The Process of a valuation will vary depending on the size, industry and profitability of the business, the reason for and date of the valuation. The typical steps in a valuation are as follows:
1) Business investigation An understanding of the business is attained through a thorough inspection of: the business, the relevant documents and data gathered from the owners and key staff (where applicable).
2) Analysing data collected Review data provided and external information to determine profitability trends, industry trends, opportunities/risks and external factors.
3) Determine value of the business Based on the information collected, consider different valuation methodologies to determine an appropriate valuation methodology and valuation of the business.
4) Preparation of the valuation report Prepare a valuation report outlining the valuation processes and justifications of the valuation.
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