Our Value Estimator Service provides a highly reliable valuation of a privately-held business at an unbeatable price. This service can be used in most business situations where an accurate valuation is needed, including the following:

• Preliminary Estate planning
• Retirement funding estimates
• Buy-sell agreements and insurance
• Owner divorce impact assessment
• Annual valuation of stock options
• ESOP Feasibility Assessment

• Exit planning strategy
• Value maximizing strategy
• Owner buy-in/out for unrelated owners
• Bank loan (SBA & conventional) due diligence
• Valuing a business for sale or purchase for smaller business(es)

This service includes phone consultation to review the valuation inputs and assumptions with the owner or financial advisor, and phone consultation assistance in understanding the valuation results.

Service Details

Valuation Method:
Discounted Free Cash Flow method using Axiom Valuation's proprietary expert system, plus, review of available private company comparables

Valuation Results:

• Total Fair Market Value
  (includes Control Premium for Minority Discount and Liquidity Discount)
• Minority Value
  (Value of Ownership Equity without Control)

Source of Company Financials:
Most recent three years of company income statements and balance sheets and/or business tax returns

Value Estimate Interview:
Axiom Valuation staff conducts a preliminary review of the company financial data and then schedules a phone interview with the client or the client’s designated representative. The Value Estimate interview last about an hour and the topics include:

• Brief review of the company’s history and most recent five year financial performance
• Determining the appropriate NAICS/SIC code industry designation(s) for the company’s line(s) of business
• Review of how the company sells its products or services, key customers, and competitors
• Determining a reasonable projection for revenue and profit growth
• Discussion of company’s long-term competitive advantage
• Review of owner discretionary expenses and possible non-recurring expense or revenue items
• Review of firm-specific risks, including customer concentration, supplier reliance, and key person reliance

The objective of this review is to finalize inputs and key assumptions to use in developing our preliminary value estimate results and preparing a draft report.

Draft Value Estimate Report:
Axiom Valuation e-mails the draft report to the client and/or the client’s designated representative, and then schedules a follow-up phone discussion.

Phone Review:
Discussion of draft results and Q&A session with client and/or the client’s designated representative conducted by a senior Axiom Valuation staff member. Any changes or corrections identified are made in a timely manner to produce the final report.

Business Value Estimate Report:
The report is 40+ pages long. We provide one hard copy Business Value Estimate Report in a customized binder, and an electronic version of the report in an Adobe Acrobat PDF file.

Additional Questions:
Up to one hour of additional phone support for questions after final report delivery is included in this service.