| professional |
 | |  | |  | |  |
| | | | | | |
 | |  | |  | |  |
Wood Forensic / Valuation Services
"The cynic knows the price of everything and the value of nothing."
|
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.
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 woodvaluation.com Find Wood Forensics / Valuation Services Copyright 2009 © David N. Wood / All Rights Reserved. |