Types of Information Needed For a Business Valuation

1. Types of Information Needed For a Business Valuation A business valuation report is an important document for every small and medium enterprise. It lets the owner know about the actual market worth of the business, information he or she can use for further benefits. In fact, this information becomes a necessity if the entrepreneur decides for a sale, a merger or an acquisition. The knowledge of the worth of the business is also required during any business divorce. However, one should always get a business valuation from an authentic service provider. Using an online application is also a wise decision. At the same time, the entrepreneur must remember that any misrepresentation of required information of a business valuation can adversely affect the valuation process resulting in undervaluation. It is the responsibility of the entrepreneur to divulge certain information to the service provider to ensure an authentic evaluation. Here are five such information discussed by Oleksiy Nesterenko needed for a genuine business valuation. 1. Profit and loss statements

2. The profit and loss statements of five years prior to the point of assessment provides the expert with ample insights regarding the business and its profit-earnings ratio growth over the years. The profit and loss statements reveal the present condition of the enterprise, making it easier for the valuation expert to prepare an accurate valuation report. 2. Balance sheets The balance sheet of the enterprise exposes the position of the assets and liabilities which helps the valuation expert to develop a better understanding of the business and evaluate it without any data lapse. Balance sheets are also attached with the final assessment report with listed inferences from them. 3. Tax returns The documentation of all the tax returns since five years prior to the valuation time is extremely important for any valuation expert or software to determine the net profit after tax liabilities have been paid off. The worth of any business depends on the punctuality of tax returns. 4. Forecasts and projections Every firm prepares reports comprising of the forecasted earnings from the business on an annual basis. These reports play an important role in enhancing the worth of a business valuation by providing the information regarding the projected worth of the business. Business valuation software is very useful in this regard. Such applications can readily process the forecasts and produce the actual value of the business as per the projected data. This software can also produce a sample

3. valuation report if an alternate set of projected data is fed into the program. 5. Assets and liabilities Another piece of important information required for a proper company valuation is the comprehensive list of all assets inventory and also the debts and liabilities of the business. If you need any help then consult Oleksiy Nesterenko. For years, Oleksiy Nesterenko has been assisting entrepreneurs and early stage companies to cope with various challenges in their businesses, and have a reputation for providing candid, business valuation and analysis, well- thought-out, and effective solutions to clients’ specific needs, regardless of complexity. Contact at (310) 710 4248 or mail at info@oleksiy-nesterenko.com. OR visit here: http://www.oleksiy-nesterenko.com/