What are the Different Types of Valuation Reports for Businesses?

valuation business

You might be familiar with how a business gets its market value. While an entrepreneur puts in years of effort, dedication, and time to build rapport, a valuation report can let you calculate if all that was worth it. The report documents and evaluates the company and all the assets owned by it in accordance with the current economic, market, and industrial aspects.

But do you know there are different types of valuation reports? Here’s a quick overview:

  • Comprehensive Report: This report focuses on a thorough evaluation of your business in accordance with the industry and market. It covers the company’s assets, shares, and interests through auditing financial statements and assessing real estate attachments. Creating this report requires expert evaluators to work on the job.
  • Estimate Report: While this report also covers the assets, shares, and interests of your business, it provides a limited analysis and is less extensive. This report comes in handy when the requirement is not that critical.
  • Calculation Report: It’s a brief valuation report that measures a company’s worth through interest, assets, and shares. This report is usually used for out-of-court settlements, internal management, planning, and related purposes.
  • Limited Critique Report: This is not a direct valuation report but feedback on one created by another professional. Thus, instead of measuring business value, it focuses on gauging the accuracy of already measured values.

Thus, you can ask your business valuation partner to create the desired report for your company based on how you are going to use it. Or, you can find the right expert depending on the criticality of your valuation needs.