Weinress & Associates, Sausalito CA

Valuation Process

Depending upon client requirements, Weinress & Associates can issue either a standard or formal valuation; the latter containing the extensive corporate and financial information which is required for legal examination and validation. The standard valuation is, essentially, a short form version of the formal evaluation, provides a range of values, and is issued in cases where a formal valuation is not mandated.

The formal valuation contains the following elements:

  • A dissertation on the legal considerations involved in the valuation of a company.

  • A full description of the company being valued which includes a discussion of its business, its management, its employees, the overall market in which it operates, and an analysis and review of its financial history and present status.

  • A valuation discussion which sets forward in detail the valuation methodologies utilized by the appraiser. The calculations are based upon methods which arrive at an end result using varying relationships between adjusted operating earnings, net worth, the capacity to pay dividends, and sales. The adjustments take into account items such as compensation levels, non-recurring income or expenses, etc.

At Weinress & Associates, the valuation is an interactive process in which the client is involved during all phases of the analysis: from the review of the adjusted historical financial information to the providing of estimated future revenues and operating earnings. Once a value or range of value is arrived at, a draft document is submitted to the client for review and comment. Only after the draft document has been thoroughly discussed with the client is a final version issued.

Valuations are performed in conformity with the provisions set down by the American Society of Appraisers under USPAP (Uniform Standards of Professional Appraisal Practice) and Internal Revenue Ruling 59-60 issued in April, 1959 (as modified by Revenue Ruling 65-193). Section 409A analyses are performed subject to the guidelines issued by the AICPA (American Institute of Certified Public Accountants).

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