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Discover Your Value

Let us help you through the valuation process. At Value Visor, we take the mystery out of how and why businesses are valued.

Most people are surprised to learn that not all valuations are the same, and that the cost variation in valuations can be extreme, from very expensive regulatory valuations to transactional valuations that you can even do yourself. The key is understanding why you are having the valuation done. The purpose of the valuation will determine what you need and what it will cost.

Our firm has team members that work together to get you the best of all worlds. If we are the best valuator for your needs, we can help you find the best valuator, or, in some cases even teach you the essentials of valuations so you can do them on your own.

Discover Your Value

Major Types of Valuations

Regulatory Valuations

These must be done by a third party, are usually done for IRS reporting, court cases, and bank appraisals. These are formal, follow rules set by law, the Courts, and regulators. Usually they are hypothetical in nature and don’t contemplate an actual sale.

Price: these can vary wildly. If you are going to court, often you hire the valuator who is not only technically competent but also great in front of a judge or jury. There you get what you pay for, and can be quite expensive. For a bank, you often only need to meet the minimum requirements of the regulation. These can be less expensive. For the IRS you might need something in between, or in some cases they permit a less costly “calculation of value.”

Our price: our regulatory valuations usually run for one entity about $6000.00. Calculations of value for one entity usually run at $2000.00. Additional fees for hourly work and expert witness services.

Transactional Valuations

Real world, “down and dirty” valuations that have to keep an eye on the regulatory requirements, but are based on industry standards or using Mergers & Acquisition (M&A) valuation techniques and methods and standards often not permitted in regulatory valuations. They contemplate an actual transaction. They usually are done by third parties to give an independent perspective, but are not required to be done by a third party. Are usually expressed as a range of values because final value can be heavily dependent on deal structure.

Can be full valuations, opinions or listing price, or calculations of value. Often are heavily market dependent. Sometimes are included in engagement fees by investment bankers, M&A advisors, or business brokers. Can be an additional fee if not contemplating an actual sales.

Price: Prices again can vary wildly depending on transaction size, complexity, and whether you are buying or selling. Opinions of listing price can be included in advisor fee, but often cost between $1500 and $2000.00 Other valuations are done as part of engagement fees which can range from $5000.00 to over $125,000.00 for complex and specialized transactions.

Our price: Calculations of value and opinions of listing price usually run at about $2000.00. On an M&A transaction, we usually will include the valuation as a milestone in the process and as part of or a separate line item in the engagement fee. Engagement fees usually run $5000 to $15,000.00 depending on agreed upon milestones, services, and transaction complexity.

We can also help you to understand transactional values on your own. See our Nine Steps to the Business Valuation Process download.

Business Improvement Valuations

These are a bit of a hybrid between regulatory and transactional valuations, but lean more towards transactional valuations. These can be done on your own, they do not require a third party, but using a third party is recommended because most companies need an outside perspective. They are like regulatory valuations because often they don’t contemplate a transactional. Also, they have to keep limiting regulations in mind. However, they are like transactional valuations in that they look at real world standards, industry requirements, and other methods that are not usually permitted in regulatory valuations. These are often ongoing and updated regularly. Regardless of whether an outside party is hired to do these, a business owner should learn how they are done and how to use the information from the valuation to improve their business. They operate under the maxim: a well-run business is a sellable business.

Price: Often included as part of a business consulting agreement with a business coach, or consulting firm. Depending on complexity effective cost can be $2000 to $10,000. Generally hovering around the $5000.00 mark.

Our Price: generally our fees are $2000.00 or $6000.00. Certain value improvement systems have their own valuation methods, in which case we often advise at an hourly rate to interpret and check results.

Mediation: When there is a dispute over valuation: buy sell agreements, partner dissolution’s, divorces, etc. often it is easier have a trained, independent outside set of eyes help mediate the parties towards an agreement. Our firm provides mediation services and full evaluative mediation services (where a full valuation is involved). These are done on an hourly basis for the mediation services plus a fee for the actual valuation work if we are asked to provide the valuation.

Our price: Senior Partner, evaluative mediation $300.00 per hour plus evaluation cost, standard Partner mediation: $225 per hour. Other rates applicable for Junior partners and directors.

We can also help you to understand transactional values on your own. See our Nine Steps to the Business Valuation Process download.

Please feel free to call us with questions. 605.359.8906