Bratton, McMorrow & Associates LLP

Steps for a Business Appraisal

At BMA, we perform the following steps to arrive at our conclusion of value for your business or business interest.

  1. Determine the parameters of the engagement, provide a fee estimate, and obtain an engagement agreement.
  2. Gather information for the valuation.
  3. Prepare a narrative regarding the history and nature of the business.
  4. Evaluate economic and industry conditions affecting the business as of the appraisal date.
  5. Perform financial analysis, including:
    1. Analysis of the historical financial trends of the business.
    2. Comparison of the financial condition and performance of the business to other businesses in the same or similar industry (ratio analysis).
  6. Normalize the income statements to amounts the hypothetical buyer could expect.
  7. Determine a value indication using the income approach, market approach and asset approach, assuming each is applicable.
  8. Reconcile the value indications to come to a conclusion of value.
  9. For a minority Interest, we estimate discounts for lack of control and lack of marketability.
  10. Prepare a comprehensive written report.