Business Value Calculation
Anyone can afford to find out what a business is worth by using our Business Value
Calculation (BVC). We perform widely used valuation methods to calculate the value
of a business and present the results in a professionally prepared and signed report.
The results are shown as a range of values.
Our BVC is a calculation engagement, as that term is defined in the Statement on
Standards for Valuation Services (SSVS) of the American Institute of Certified
Public Accountants. We perform the calculation procedures described below. The
estimates of value that result from a calculation engagement are expressed as
calculated values. A calculation engagement does not include all of the procedures
required in a valuation engagement, as that term is defined in the SSVS. A valuation
engagement might produce different results. Calculation engagements are not
intended to be used for litigation purposes or submitted to government agencies like
the SBA or IRS.
We summarize earnings data from the previous 3 years, calculate value using 5 widely
used methods, and report any industry rules of thumb. We need: 1) Federal income
tax returns (with balance sheets) for past 3 years, 2) Current year-to-date P&L and
balance sheet (if available), and 3) List of any non-recurring (unusual) or non-
operating (non-essential or personal) expenses during periods covered by the
previous items. The fee for a Business Value Calculation is $499, payable in advance.
We will complete your BVC report within one week of receiving information and fee.
Our Business Valuations follow the Statement on Standards for Valuation Services (SSVS) of
the American Institute of Certified Public Accountants for valuation engagements.
We perform a thorough financial analysis of the business, and analyze the condition of and
outlook for the industry and the economy in general. We use methods from all 3 valuation
approaches (market, income & asset) to reach our conclusion. We provide an extensive report
detailing and explaining what we did and why we did it.
Our Business Valuation reports have been accepted and used in a number of litigation cases
involving estates, divorce, wrongful death, and shareholder/partner disputes. Our Business
Valuation reports also meet the requirements of the Internal Revenue Service (IRS), and we are
a “qualified source” of business valuations for the Small Business Administration (SBA).
We need 3 years of financial statements and/or tax returns plus other financial information
like: listings of receivables, payables, inventory, and fixed assets. We will also need documents
like real estate leases, loan agreements, articles of incorporation, and buy-sell agreements. We
provide a documents request list at the beginning of every valuation engagement. Our fee starts
at $1,500 for businesses with annual sales less than $1 million. Download our Business Valuation
Services Brochure for a detailed fee schedule. Our normal turnaround time is 2 to 3 weeks from
receiving a 50% retainer and all requested information. Expedited service is available for an
Other Realted Services
We strongly believe that business owners should start planning how they wish to exit their
businesses long before they actually intend to leave. Getting an objective, professional opinion
of what a business is worth is one of the most important initial steps. We also work with the
owner’s other advisors to draft and implement an exit plan that often contains strategies to
maximize business value.
We work with business owners and their advisors to determine the key value drivers in their
businesses, and how to improve them. Owners can monitor their progress by performing periodic
SBA Lender Program
We offer a special flat-fee of $1,495 for business valuations required for SBA loans. Click
We provide the following services related to buy-sell agreements: 1) review and critique existing
agreements; 2) assist in drafting new agreements; and 3) perform business valuations required
under the terms of the agreement.
We provide the following services in support of litigation involving matters related to business
valuation: 1) perform business valuations; 2) serve as a consultant; 3) provide expert testimony;
and 4) review reports prepared by others. David E. Coffman has been recognized as an expert in
business valuation, and has testified in a number of counties throughout Pennsylvania.
Liquor License Valuations
We provide valuations of PA & NJ liquor licenses. Our valuation reports have been used to
substantiate the value of liquor licenses for litigation and lending purposes.