Business Valuations | Company Appraisals | Proforma Business Valuations

Business valuations serve many purposes. They can be used for internal understanding of business worth for management, investors and equity holders. More importantly, they are used to assess viable businesses looking for strategic merger & acquisition opportunities. A well-produced business valuation can provide a 30,000 foot view of how the business operates. It also provides a granular look at the financial standing of the company. There is no silver bullet for performing a business valuation. Acquirers and internal managers alike have different methods they like to use for valuing businesses and business assets. For that reason, we take a multi-faceted approach to business appraisals and business valuations by using the following methods. Regardless of the type of business you operate, there are many differing nuances that need to be taken into account when valuing the company as a going concern. When it comes time to value your business or perform any business planning function relative to company valuations and appraisals, please give us a call.

Valuations Service Types

Real Estate Valuations
Comparable Valuations
ESOP Valuations
409 (a) Valuations
IP Valuations
M&A Valuations
VC Valuations
NPV Valuations
APV Valuations

Rely on our Business Valuation Expertise

Enterprise business valuations are necessary for both internal and external business planning, assessment and analysis. Moreover, a properly valued corporation can also set proper expectations for shareholders when it comes time to liquidate business assets or perform any M&A activity. Multiple methods of professional valuation exist for understanding the intrinsic value of a business as a going concern. Each respective valuation method can help to represent business value from an entirely different perspective… We provide a view from as many as six different methods, using various “rules of thumb” and benchmarks to ensure shareholders obtain a more holistic view of valuation.

What is your business

potentially worth?

Understanding the value of your business is a foundational step in strategic decision-making. Whether you're preparing for a sale, attracting investors, issuing equity, or planning for the future, a comprehensive business valuation can provide you with essential insights into your company’s worth in the current market. Our valuation approach includes a deep analysis of financial statements, cash flows, assets, and market comparables to deliver a realistic and defensible estimate of enterprise value.

At InvestmentBank.com, we utilize a blend of industry-recognized methodologies such as the Comparable Transactions Approach, Net Present Value (NPV), Adjusted Present Value (APV), and the Venture Capital Method. Each technique gives a unique lens through which value is assessed—ranging from earnings multiples and growth forecasts to investor return expectations. These insights help you better understand your business’s market position, growth potential, and possible value in an M&A scenario.

How we work

A Professional Business Valuation Process

A time-tested process for corporate business valuations Not only does our network team of valuation professionals provide clients with the best in service and support, our firm also works with clients to not only get the best value for their businesses, but also to meet their individual business goals.

How Does a Business Valuation Work?

A professional business valuation involves a structured and analytical process aimed at determining the economic value of a company or business unit. The process typically begins with a discovery and information-gathering phase where we evaluate the company’s historical financial data, operating structure, intellectual property, industry trends, and strategic positioning.

Our valuation professionals then apply appropriate valuation methods based on the nature of the business, its industry, and the purpose of the valuation. These might include discounted cash flow analysis, book value adjustments, or market-based comparisons. Throughout the process, we work closely with management to ensure accuracy, relevance, and alignment with the goals of the valuation—whether for litigation, taxation, financial reporting, mergers, or internal planning.

Finally, the valuation is documented in a comprehensive report that outlines the methodologies used, the rationale behind valuation assumptions, and the final estimated value. This detailed analysis helps stakeholders make informed decisions with confidence and clarity.

Why is a Business Valuation Needed?

Business Valuation Report

used in non‑litigation situations (e.g., selling price, buyer‑seller transactions).

Business Appraisal Report

used for IRS/litigation; details how value is determined.

Business Appraisal Report (Individual)

similar but includes forecasts, ratio analysis, working capital, etc.

Updated Report

ased on latest data, updated every several years.

Valuation Methodologies

Valuing a business requires the application of appropriate methodologies tailored to the company’s characteristics, industry norms, and the purpose of the valuation. At InvestmentBank.com, we incorporate multiple valuation models to ensure accuracy and completeness in representing a business’s true worth.

Adjusted Book Value Method

This method recalculates the company's asset values on the balance sheet by adjusting for depreciation, market conditions, and any off-balance-sheet liabilities. It provides a snapshot of what the business’s tangible assets would be worth in a liquidation scenario and is particularly useful for asset-heavy companies.

Net Present Value (NPV) Method

The NPV method discounts the expected future cash flows of the business to their present value using a discount rate that reflects the risk profile of those cash flows. It is a widely used method for companies with predictable earnings and long-term growth trajectories.

Adjusted Present Value (APV) Method

Similar to the NPV approach, the APV method separates the impact of financing decisions from the core value of the business. It is useful in cases where a business is undergoing or planning leveraged transactions, as it accounts for the value of tax shields from interest payments.

Comparable Company Analysis

This market-based approach compares your business with similar publicly traded or recently sold companies in the same industry. By examining metrics like EBITDA multiples, revenue growth, and profitability, it derives a benchmark valuation range.

Venture Capital Method

Often used for early-stage or high-growth startups, the venture capital method estimates post-money valuation based on target returns and projected exit values. This approach is essential for companies seeking equity funding from VCs or angel investors.

Each methodology is chosen based on the business's lifecycle stage, the industry in which it operates, and the specific needs of the client. In most cases, we apply multiple methods and reconcile the results to develop a balanced and credible valuation.

Types Of Business Valuations

Income Approach – Estimates value using discounted future cash flows, accounting for risk, forecast assumptions, and discount rates—commonly used for businesses and intangible assets.
Adjusted Book Value Method - Determines value by adjusting the company’s book value, often using excess earnings to reflect true asset worth.
Market Methods - Estimates value using recent industry-specific transaction data and comparables from reliable databases and modeling tools.
Public Company Guideline Method - Values larger firms by comparing them to similar public companies, using cash flow-based metrics and accessible public data.
Tailored Valuation Approach: Every company is unique—so we assess operations, financials, and market position holistically to determine accurate value.
Valuing intangible assets — such as patents, trademarks, and digital assets—requires a specialized and disciplined approach due to their unique nature. In today’s knowledge-driven economy, these assets often derive their value from innovation and strategic market positioning. The valuation method used depends on the purpose, asset type, and industry context.

We apply several recognized approaches, including the Income Approach, Venture Capital Method, Relief from Royalty, Real Options Method (ROM), Market Comparables, Historical Cost, and Replication Cost. Other standard valuation methods may also be used depending on the specific business and timing.

Results + Impact

IB Intelligence

Cost savings achieved

$5M+

On average, clients experience significant operational savings within the first year of partnering with IB.

Increase in operational efficiency

75%

Streamlined processes and expert guidance boost your operational efficiency by 75%, ensuring smoother and faster workflows.

Better green credentials

37%

Foresight cuts your carbon footprint while boosting product sell-through via AI and efficient data use.

Why Perform A Business Valuation?

Companies seek professional business valuations for various reasons—ranging from internal planning to meeting external requirements such as securing financing or loans. Depending on the purpose, different valuation approaches can be tailored to meet specific needs.

Valuations for Financing - Lenders are becoming more cautious when providing loans to privately held businesses. A third-party valuation serves as an independent, risk-mitigating “gut check” that supports the lender’s decision-making and adds credibility to the borrower’s financial position.‍
Merger, Acquisition, or Business Sale - Before a sale, merger, or acquisition, a fair market valuation helps both buyers and sellers understand the true value of the business and its assets. It supports negotiations, highlights value drivers, and can justify goodwill or premium pricing. Buyers may also request an independent valuation to avoid overpaying.‍
Litigation - In legal disputes involving economic damages, a business valuation helps establish the financial worth of a company. Courts often rely on third-party valuations to determine fair compensation or resolve ownership disagreements.‍
Exit Planning - Business owners planning retirement or an exit strategy benefit from regular valuations. Knowing the company’s current value helps in timing the sale, setting realistic financial expectations, and ensuring the business is ready for market when the time is right.‍
Buy-Sell Agreements - For companies with multiple shareholders, valuations are essential in determining fair share value during ownership changes. They also guide life insurance coverage needed to fund stock repurchases if a shareholder passes away or exits the company.‍
Insurance - Insurance providers may require updated, independent valuations to accurately underwrite general corporate or life insurance policies. These valuations help assess business risk and ensure proper coverage.‍
Gift and Estate Tax - When transferring assets through gifting or estate settlement, the IRS mandates third-party valuations to assess the business portion of the estate. Accurate valuation ensures compliance and proper tax calculations based on fair market value at the date of transfer or death.‍
IP Valuation - Valuing intellectual property such as patents, trademarks, or proprietary technology is crucial in today’s innovation-driven economy. Accurate IP valuation supports licensing, investment, and M&A decisions.
Corporate Conversion - When a company changes its legal structure (e.g., C-corp to S-corp), a valuation is needed to establish the business's value at the time of conversion. This figure is used to calculate potential built-in gain tax if the business is sold within a specific holding period.
Employee Stock Ownership Plans (ESOPs) - ESOPs require independent valuations for compliance with both tax and financial reporting standards. These valuations ensure employees receive fair value for their ownership stakes and protect the company from legal or tax issues.
Foreclosures & Liquidations - In financial distress, businesses need to determine the market value of assets being liquidated or foreclosed upon. Accurate valuations help satisfy creditors, lenders, and stakeholders during the process.
Divorce or Estate Settlements - Business valuations are often ordered by courts or agreed upon by parties to ensure fair and equitable distribution of business interests between spouses or heirs in divorce or estate proceedings.

GAAP has evolved to require more precise fair value reporting, especially in acquisitions. Under purchase accounting, intangible assets must be separately identified and valued. These fall into five general categories. Assets with indefinite lives, including goodwill, are not amortized but must undergo regular impairment testing, which involves valuing the company’s reporting units.