Here is a Business Valuation Checklist of the information we need to get started on the Business Appraisal or Business Valuation of your US company. This list is inclusive, and all information here may not apply to your unique situation. The Business Appraisal Checklist form is also downloadable in pdf format: Business Appraisal Checklist. Once you are a client, we can email you the Business Valuation Checklist in Word Doc form.
What is the intended use of this Business Appraisal or Business Valuation?
- Brief company history and description
- Revenue and earnings (4-5 years if possible)
- Are company revenue and earnings stable or growing?
- What are the customer concentrations?
- What is the current ownership structure? Any sale or purchase of company stock in the last five years? Any stakeholder buy-sell agreements?
- What are the Exiting Party or Client goals?
- What deal structure is the Exiting Party or Client open to (if applicable)?
- Will there be sufficient management continuity?
- Current capital structure
- Financial Statements
- 4-years historical financial statements (Better if a review from your CPA, but a compilation beats no financials from a CPA)
- 4-5 years of historical tax returns
- Current YTD interim financial statements with comparative prior year interim period
- Quarterly summary P&L (past three years)
- Detailed calculation of EBITDA
- Description of major product categories
- Revenue by period by significant product category
- Description of the sales process and customer profile
- Market size; share analysis; opportunities and threats to market share
- Key competitors
- Dashboard metrics currently used to evaluate sales performance
Customer concentrations – List the five largest customer revenue amounts for the past three years and a total of all other customers.
Vendor concentrations – List the five largest vendors with amounts for the past three years and a total of all other vendors. Do you have any contracts or licensing agreements in place?
- Headcount by function
- A brief biography of key employees
- Any deferred compensation or perks?
- Any non-compete agreements?
Facilities & Assets – ownership or lease terms for all buildings, land, trademarks, intellectual property, websites and equipment
Description of any current/pending litigation or tax issues
Site visit or pictures