Services
Business Valuation Birong Associates, LLC has three levels of service and four levels of reporting to meet the needs of any client. Service and reporting levels one through four, as described below, are based on a formal appraisal of the subject company and each will result in the same opinion of value. Although level five also results in an opinion of value, the value is developed using less rigorous methods than a formal appraisal. This level may be a cost effective alternative in situations where it is deemed to be applicable and where a formal appraisal is not be needed. Level six may be appropriate for clients who are interested in developing an offer or asking price for the acquisition of a small business when the development of a formal valuation may not be necessary to meet the client’s needs. Level 1 - Comprehensive Report This report is typically 60 to 80 pages in length and includes detailed explanations of all aspects of the valuation analysis performed by the Appraiser. Full, comprehensive reports are recommended in situations where an actual sale of the company is not expected such as estate tax planning or gifting of a business interest as well as other situations where a third party, such as the IRS, may be reviewing the document. In addition, this level is also recommended in situations where an actual transfer of ownership is expected such as in the case of a buy-sell agreement, merger or acquisition or when the valuation is being developed for purposes of litigation. Level 2 - Summary Report - Restricted Use A summary report is often appropriate when the valuation is being prepared for internal purposes such as business planning. The report is typically 40 to 60 pages in length and excludes certain non-essential information such as the history and description of the business being valued, industry and economic analyses and the analysis of the financial condition of the company. It is restricted to the stated purpose of the valuation in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) due to the limited description of non-essential information in the report. Level 3 - Letter Report - Restricted Use A Letter report is five to seven pages in length. It's content is limited to a certification of the estimate of value, a description of the scope of the appraisal and minimum USPAP/IBA reporting requirements. This report may be appropriate for clients who are familiar with valuation concepts or for valuation updates. It is restricted to the stated purpose of the valuation in accordance with USPAP standards due to the limited description of non-essential information in the report. Level 4 - Oral Report An oral report may be desirable in instances where the Appraiser has been engaged for situations where no written document is required. Level 5 - Limited Scope Appraisal - Restricted Use A limited scope appraisal invokes the departure rule of the Business Appraisal Standards in order to provide a lower cost valuation alternative for clients who are involved in establishing an asking or offer price for a small business and for purposes of SBA financing. The report is restricted to the stated purpose of the appraisal and the scope of the appraisal process is limited by the lesser level of research conducted, the use of only those valuation methods which may be effectively used without a more comprehensive level of research, the extent to which the appraisal process is detailed in the report and the fact that the Appraiser has forgone a formal Internal Revenue Ruling 59-60 valuation. This appraisal level is only applicable in situations where, in the Appraiser’s opinion, a credible estimate of value of the business entity may be developed given these limitations. Level 6 - Calculated Estimate of Value B&A can also develop an informal estimate of the value of a business enterprise. Such engagements may be appropriate when B&A and the client agree that a formal opinion of value is not needed in order to meet the client’s needs. The extent of the procedures utilized in this process are more limited than those of a valuation and the results do not include a formal opinion of value. Frequently Asked Questions Financial Performance, Growth and Value Improvement B&A specializes in assisting owners of business organizations improve revenues, increase profitability and increase the equity value of their businesses. Typically, the first step in this process includes the development of a financial condition survey, as described below. Business management consulting assignments have included the following: Financial condition survey: A comprehensive analysis of the financial condition of a client company is developed to evaluate its operating performance as compared to industry and business norms and expectations of the equity holders. The analysis is designed to identify specific strengths and weaknesses of a company's operations and includes a results summary and recommendations. Budget development: Hands on assistance in the development and implementation of corporate-wide budgeting programs including all related systems and procedures. Services include management training in the use of budgets, monthly budget variance and ratio analyses and financial condition reports to management. Development of business plans and loan proposals: Documents are tailor-made for each client and each purpose and include professionally prepared operational, marketing and financial details required by venture capitalists and institutional lenders. - The development and implementation of more sophisticated organization structures, business systems and processes to support rapid growth; - The Development and implementation of company-wide budgeting systems and procedures, including the training of managers in the proper use of budgets and the preparation and presentation of monthly variance analyses to senior management, shareholders and owners; - Working with troubled companies - Improving the financial results of under-performing companies - Preparation of loan proposals for institutional and private lending - Preparation of comprehensive, professionally prepared business plans for business expansions, division spin-offs and the pursuit of equity and debt capital - Organizational restructuring - Interim CFO and CEO services - Financial/accounting position candidate screenin; - Assisting corporations develop and implement the changes required to make the transition to their next level of growth - Other projects and advisory services tailored to the needs of our clients. Frequently Asked Questions Mergers and Acquisitions/Business Brokerage Intermediary Mr. Birong is licensed and qualified to assist privately owned companies in the entire purchase or sale process including acquisition candidate and buyer searches, valuation, negotiations, coordinating involved parties and financing. Related services include conducting due diligence for buyers and sellers and evaluation of offers for purchase or sale of a business entity. (Licensed Florida real estate agent). Frequently Asked Questions |
