Valuation Services

At Summit Acquisitions Group [headquartered in Atlanta, GA with an office in Charlotte, NC], we believe the business valuation of a company is one of the key steps to a successful sale.  This term is used to describe the process used to estimate the value of a corporation. An accurate appraisal and/or business valuation is crucial, because it can maximize the market value for the seller, while reducing discrepancies between the expected purchase price and negotiated purchase price. Several years ago, we made the determination that outsourcing our business valuations to a credible third party eliminated the appearance of conflict of interest. As such, we contracted with the best such firm in the United States, and this partner has completed more than 9000 corporate appraisals, and is highly regarded in our industry. We manage the process for you.  Due to the volume of business we do with this firm, we have negotiated a favorable cost structure.

GENERAL GUIDELINES FOR THE BUSINESS VALUATION TYPES

Full Business Valuation:

Summit Acquisitions Group, with offices in Atlanta, GA and Charlotte, NC, offers a Full Business valuation.  This appraisal is a must for companies with revenues of $2,000,000 and above, especially if there might be SBA financing. In every case, this appraisal is the best for selling a business, litigation purposes, estate planning and will give the reader good support for the value. Approximately 70 to 100 pages.

This report contains:

• 10 Valuation Methods
• Description of all methods, weightings and appraisal methodology
• Statistical Summary
• Graphic Displays
• Comparable Sales Analysis Method
• Critical Factors Discount/Premium Analysis
• Risk Factor Method
• Weighted Value Formulas section
• Correlation of Methods
• Clarification of Value
• Comments on Appraisals
• Comments on Fair Market Value
• Required Rates of Return ’ Forming a Capitalization Rate
• Principles of Evaluation section
• Discretionary Net Profit Analysis
• Historical and Projected Overview
• Normalized Discretionary Earnings section
• All of the comparable sales we have researched
• A write up on the Industry and where it is headed
• Questionnaire describing the assumptions in the report
• A write up on the local trade area for the company
• Industry Ratio’s
• Area maps and sometimes Ariel photo’s
• Justification for Purchase Test

Limited Scope Business Valuation:

Summit Acquisitions Group, located in Atlanta, GA and Charlotte, NC, offers a Limited Scope appraisal.  This is a good business valuation for a smaller company that just can’t afford the Full Business Valuation listed above. We don’t know that there would be a particular size company to limit this appraisal to, but it would certainly leave a lot of important information out for a sophisticated buyer. This report is approximately 50 pages.

This report contains:

• 10 Valuation Methods
• Description of all methods, weightings and appraisal methodology
• Statistical Summary
• Graphic Displays
• Comparable Sales Analysis Method
• Critical Factors Discount/Premium Analysis
• Risk Factor Method
• Weighted Value Formulas section
• Correlation of Methods
• Clarification of Value
• Comments on Appraisals
• Comments on Fair Market Value
• Required Rates of Return Forming a Capitalization Rate
• Principles of Evaluation section
• Discretionary Net Profit Analysis
• Historical and Projected Overview
• Normalized Discretionary Earnings section
• Questionnaire describing the assumptions in the report
• Justification for Purchase Test

Value Report Business Valuation:

Summit Acquisitions Group, located in Atlanta, GA and Charlotte NC, offers a Value Report.  This is an excellent report for small companies that just cannot afford either of the larger ones. We would hesitate to use this on companies with over $5,000,000 in sales, but this would be your call. We will not do this one for companies that may end up in litigation, estate planning, or a Stock Sale Appraisal. It would be a good way for a company to see if it wants to spend the money for the larger one. Approximately 30 pages.

This report contains:

• 5 Valuation Methods
• Description of all methods, weightings and appraisal methodology
• Statistical Summary
• Graphic Displays
• Comments on Appraisals
• Comments on Fair Market Value
• Required Rates of Return Forming a Capitalization Rate
• Principles of Evaluation section
• Discretionary Net Profit Analysis
• Historical and Projected Overview
• Normalized Discretionary Earnings section
• Justification for Purchase Test

For additional information on Business Valuations through Summit Acquisitions Group, please call or email either of our offices in Atlanta, GA and Charlotte, NC.