Business Valuation Reports | Troy Valuations

Troy Valuations Inc. is an independent expert engaged to provide a conclusion of value of a business. Troy Valuations is a member of the Canadian Institute of Chartered Business Valuators, the leading organization for business valuation in Canada.

A business valuation report is a written communication containing a conclusion as to the value of shares, assets or an interest in a business written by Troy Valuations. Download a sample valuation report.

In practice, there are three types of Valuation Reports. These Reports are not only distinguished by the scope of review and the amount of disclosure provided, but also by the level of assurance being provided in the conclusion.

The type of valuation report required is a matter to be discussed and agreed on by the client and Troy Valuations, and then reflected in the terms of engagement. The valuation report will meet the needs of the client in terms of cost, assurance, disclosure and scope.

There are many purposes for needing a valuation report. Every valuation study is as unique as every company. One size doesn’t fit all. A report used for one situation may not be applicable in another, especially if significant time has passed.

The valuation report will contain information pertaining to the business, including as applicable:

Our Business Valuation Report: A Detailed Overview

At Troy Valuations, we believe in transparency and thoroughness. Our standardized business valuation report is meticulously structured to provide you with a comprehensive analysis of your business's value. Here's what you can expect in each section:

Executive Summary: This is the gateway to our valuation report, offering a condensed synopsis of the valuation conclusions. It distills complex data into the essentials, allowing you to grasp the valuation outcome quickly.
Introduction: Here we lay the groundwork for our relationship with you. It outlines the purpose of the valuation, the date of valuation, and the scope of our analysis, framing the context for the entire report.
Definitions: Clarity is key in our reports. This section demystifies jargon and ensures that all parties have a mutual understanding of the terms used throughout the valuation process.
Industry and Economic Overview: We provide a macro view of the economic conditions and industry trends that can impact your business's value. This section contextualizes your company within the larger market landscape.
Description of the Business: A deep dive into your company's operations, history, products/services, and strategic position. This narrative is crucial as it directly influences the perceived risk and growth prospects, which are pivotal to the valuation.
Valuation Calculations: The core of our report, where we present the methodologies used and the calculations performed. This quantitative analysis forms the backbone of our valuation conclusion.
Valuation Conclusion: This section brings together all the analyses and findings into a definitive value estimate of your business. We synthesize the quantitative data from our calculations with qualitative insights gained from our detailed business and industry analysis. The valuation conclusion provides a clear and justified value range for your business, reflecting its current market position and future potential. This summary is designed to be both informative and actionable, equipping you with a robust foundation for making strategic business decisions.
Appendix A - Scope of the Review: This addendum details the extent of our examination, providing transparency into what was and was not considered during our evaluation.
Appendix B - Limitations on Use: Important disclaimers and caveats that outline how the valuation should be used, ensuring that all users of the report are on the same page regarding its applicability.
Appendix C - Assumptions: Every valuation is based on certain premises, whether about market conditions or future earnings. This section outlines those assumptions, grounding the valuation in a set of agreed-upon starting points.
Appendix D - Evaluation Procedures: An exposition of our valuation process, offering insight into the thoroughness and diligence of our approach in determining the value of your business.
Appendix E - Financial Information: The financial data and statements we analyze are the lifeblood of the valuation. This section presents the numeric evidence that supports our valuation conclusions.

The Structure and Benefits of Our Valuation Reports

Each section of our report is designed to build upon the last, creating a cohesive and comprehensive narrative about your business's value. At Troy Valuations, we take pride in crafting a report that not only meets but exceeds industry standards, ensuring that you, the client, receive a valuation rooted in precision and clarity.

The cost of a valuation report depends upon among other things: the purpose or use of the valuation report, the level of assurance, the breadth and depth of the scope, the degree of disclosure, the complexity of the business, including its operations, shareholding structure, and financing structure, and the number of effective dates to be used in the report.

Additionally, when determining the value of a business, it is crucial to take into account a multitude of factors that can significantly impact its overall worth. These factors include, but are not limited to, competition, the buyer market, stability of the labor force, customer base, owner involvement, revenue, age of the business, profitability trend, type of sale (asset or share), and the availability of vendor financing. Understanding and analyzing these factors, along with their interplay, is essential to accurately assess the value of a business.

Therefore, a comprehensive understanding of all possible factors that influence a business's value is necessary to conduct a thorough valuation. By considering not only the cost and considerations related to obtaining a valuation report but also the various factors affecting a business's value, a comprehensive and accurate assessment can be made, providing valuable insights for decision-making.

Upon engagement, Troy Valuations will provide a list of documents needed to commence its valuation study. The document list is intended to be complete but not exhaustive. More information may be required upon review of the information provided by the client.

Upon review of the documents provided, Troy Valuations will provide a list of in-depth questions designed to clarify the information received, understand the operations, and identify the value drivers of the business.

The amount of time required to complete a valuation report is dependent upon the type of report and the speed at which information is delivered to Troy Valuations. We are committed to a high level of service to meet the diverse and unique needs of each of our clients. The highest standards of honesty, integrity and professionalism are applied from an independent and objective to provide value in a timely and efficient manner.

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