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Understand the value of your business.

Have you ever wondered what your company was worth? There are many reasons why you might need to know. These could include planning for the internal sale of your company, evaluating an offer to purchase your company, gifting shares to your children, or taking the first steps to transition to an ESOP, to name a few. In some situations, an informal “range of value” or calculation of value  will be sufficient to determine your company’s value. Others will require a full-blown valuation report.

At JAK + Co., we can help you understand the value of your business. Although we don’t prepare valuation reports, as these would interfere with our attest independence, our team of valuation experts, which including a certified valuation analyst (CVA), can support you with the following value consulting services:

  • Rule-of-thumb or range-of-value calculations
  • Calculation engagements
  • Floor value calculations
  • Formula-based calculations for buy/sell agreements
  • Valuation report review

We also provide these related services:

  • Transaction tax and structure consulting
  • After-tax cash flow analysis (for buyer)
  • Feasibility of cash flow for transaction terms

Planning to purchase a company?

If you’re planning to buy or merge with another company, you likely received a valuation report as part of your evaluation of the transaction. A valuation report is typically long (approximately 100 pages!) and difficult to understand. Your JAK + Co. valuation consultant can guide you through the report and highlight critical need-to-know details. We can also offer feedback on the report, so you can feel confident in your decision.

Value Consulting FAQs

Short answer = It assigns an economic value (aka dollar amount) to your business. Longer answer = Depending on the reason you need one, a business valuation involves a variety of analyses and methods. It also involves judgment on the part of the evaluator to determine the value of your company. This is typically based upon valuing your income stream (benefit stream) by utilizing projections or through historical earnings. In most cases, the value of your company is the value of its future income potential to the buyer. Read our blog to understand more about valuation reports.

Your business would need value consulting when planning for the internal sale of your company, evaluating an offer to purchase your company, gifting shares to your children, or taking the first steps to transition to an ESOP, to name a few reasons. 

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