Valuation Process

EBV divides the valuation process into six major phases.

Setup

In the first phase of the valuation process, you set the assumptions that govern the project, enter basic data about the project, and gather information from the business's owners and/or managers. See Setup.

Financial Statements

In the second phase of the valuation process, you enter and adjust the historic financial statements. See Financial Statements.

Financial Analysis

In the third phase of the valuation process, you perform analyses on the historical data. These analyses provide information that is essential for performing an accurate appraisal. See Financial Analysis.

Appraisal

In the fourth phase of the valuation process, you apply commonly-accepted appraisal methods to the data. See Appraisal.

Conclusions

In the fifth phase of the valuation process, you draw conclusions from the results of the appraisal. See Conclusion of Value.

Sanity Checks

In the sixth phase of the valuation process, you test your conclusions to see that they are reasonable. See Sanity Checks.