Valuation Approach

At Valuation & Forensic Partners, we utilize business valuation methodology that ranges from the traditional to the most advanced.  And, regardless of the complexity of the methodology, we approach each analysis with the highest level detail and thoroughness.

Depending on the type of valuation, business valuations can potentially get reviewed by the IRS, the court, and/or other valuators. An honest and thorough valuation opinion will help your value withstand scrutiny and/or move toward settlement.

The valuation approaches we use are determined by the unique facts and circumstances of every project. Additionally, our reports substantiate our assumptions and apply rigorous analysis to the value determination.

The cost of capital developed in our reports is determined by the best methodologies. Our discounts / premiums reflect the most up-to-date techniques, research, and analysis to buttress our conclusions. They are not just numbers in our reports.

The income approaches that we utilize range from the "simple" to the most complex methodologies depending on the situation. They include:

• Capitalization of earnings
• Traditional discounted cash flow (DCF)
• Probability weighted scenario analysis / PWERM
• Real options
• Monte Carlo simulations
• Black-Scholes-Merton
• Lattice models

Our private company transaction analyses utilize multiple transaction databases to ensure we are reviewing the most comprehensive list of past transactions available. These databases include:

• Mergerstat
• IRS
• IBA
• BizComps
• Pratt Stats
• MidMarket Comps

We do not believe that one size fits all. We develop supportable conclusions driven by robust, substantiated analysis.