Opinion Letter vs. Formal Business Valuation
Frequently business owners would like to have an idea of what their business is worth but don’t want to go to the expense and time required for a full Formal Valuation.
An Opinion of Value is a process and a set of procedures used to estimate the economic and on-going value of a business. The result is usually within the approximate range of value produced by a Full Formal Valuation. An Opinion of Value differs from a Formal Business Valuation in that it uses fewer methods of valuing a business, is smaller in size, and therefore less expensive in nature.
An opinion rendered by an industry expert considers not only the financial factors relating to value, but the market conditions that affect your particular industry. These factors combined create an Opinion of Value that is used for informational and planning purposes over the lifespan of the company and the individuals with ownership equity in the company.