Wood Forensic / Valuation Services
    David Wood / CPA  / CVA and MFFA (Emeritus)

"The cynic knows the price of everything and the value of nothing."
    - Oscar Wilde
Valuation Engagement

The valuation engagement is used when the client needs a
conclusion of value, formerly known as an opinion of value.

Essentially, this means you get my opinion about the value
of the business.  I follow the prescribed procedures to
reach a conclusion of value of the business.

I gather four types of information:

Overview of the Business
Economic Outlook
Industry Analyses
Financial Analyses

Then I consider three approaches:

Asset Approach
Income Approach
Market Approach

After considering all of the above, I develop a conclusion
of value of the business.  Finally, I prepare a report of my
findings.  The report is either a Detail or Summary Report.
Calculation Engagement

A calculation engagement is used when you want to focus
on a particular method without considering everything that
is required in a valuation engagement.

This means that you and I agree on the procedures and
the methods to be performed.  The result is a calculation
of value based on those methods and procedures.  This
engagement is usually not appropriate for litigation, but
can be useful for many situations, including litigation in
limited instances.

A calculation of value can be very useful to size up an
initial offer to buy or sell a business, in certain estate and
gift tax situations, and anytime you need an estimate of a
value, but don't need a full valuation.

A calculation engagement has the advantage of being less
expensive than a valuation engagement.

I would be happy to discuss these two types of
engagements, as well as a forensic accounting
engagement.  Call for a confidential discussion.
Wood Forensic / Valuation Services    David Wood / CPA/ ABV / CVA / CFFA
824 Main Street Suite A /  Mount Vernon Illinois 62864
618/242/3743/voice/cell   866/242/3743/fax
e-mail address is dwood at

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