The following is a request list for business valuation services.
1) Five Historical Financials –I have the P&L’s the last five years, but I need their corresponding balance sheets. I also need the December 31st, 20xx (most recent) P&L and Balance sheet.
2) Forecast Financials – Provide us with revenue targets for the next 3-5 years.
3) Annual Owner’s Salaries for last five years.
4) Owner’s Adjustment – for the past five year period. We need to normalize the earnings of the company for any of the following expenses:
- a. Owner’s benefits – i.e. life insurance, medical, etc.
- b. Owner’s personal expenses that were expensed by the company (i.e. auto, travel, cell phones, insurance, education, etc.)
- c. Any other expenses not directly needed to produce annual income.
5) Onetime Expenses – any special onetime expenditures that are not reoccurring such as the purchase of new equipment, legal expense for a lawsuit, special bonuses, investment in infrastructure, etc.
6) Revenue by major customers for the past five years. Major is defined by any customer exceeding 5% of the annual revenues of the company.
7) Nature of contracts with customers, i.e. size, length, etc. Any contracts of significant size you may win or lose in the near future?
8) Recent real estate appraisal.
9) Write up on the Company – please include thoughts on the following
- a. What is unique about your company.
- b. What do you do for customers that is unique to you. i.e. what is your “value proposition.”
- c. What do you do well (core competency)?
- d. What could you do better?
- e. What do your competitors do well or better?
- f. Who are your major competitors? How large are they?
- g. When you win contract/opportunities what are the customer’s key decision criterion?
- h. What are the future opportunities for your company and the industry?
- i. If a competitor purchased your company, what duplicate costs could he eliminated?
- j. Which companies would be interested in acquiring your operation and why?
Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC, a middle-marketing M&A and capital advisory firm. Nate works with corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He holds Series 79, 82 & 63 FINRA licenses and has facilitated numerous successful engagements across various verticals. Four Points Capital Partners, LLC a member of FINRA and SIPC. Nate resides in Seattle, Washington. Check the background of this Broker-Dealer and its registered investment professionals on FINRA's BrokerCheck
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