Types of reports regarding company valuation

A business report is the documentation of all the findings of a business valuation process in a systematic manner. A business report is designed in such a way that it covers all the relevant information about the business, which is comprehended by an analyst. Business reports can be of different types based on it use and process. The general types of business reports are as follows.

1. Comprehensive report

These type of reports are made of a set of opinions regarding the worth of the business. Each opinion is thoroughly researched upon and all the findings are tabulated smartly. These reports are usually prepared at the time of the sale of a business, in which the purchaser demands an extensive company valuation.

2. Calculation Report

These types of reports are the most common. These are generated when any one of the business valuation methods is decided upon by both the purchaser and buyer. This compromise is done due to the unavailability of detailed information of any business. These reports are thinner in size and contain a focused valuation of a company.

3. Fairness opinions

These types of reports are conclusive in nature. Such reports are prepared to aid a manager to take the right decision during any merger or acquisition. Instead of a solid portrayal of the worth of the company, these reports contain the comparison among alternatives and the final opinion derived from the analysis. These type of reports are extensively used when any buyer or purchaser has very less time to decide what they should do with any particular business.

4. Critique of another Report

These reports are reviews of other valuation reports. Such reports might be developed by business valuation firms to point out the errors made by a competitor firm. Companies with small business funding go through such critique reports and decide on a business valuation firm for their own appraisal. Usually, the business valuation firm with the least number of critique reports is considered to be the best. It is not advisable to trust every critique report as such reports might be sponsored.

Preparing a business valuation report is an art. It is not easy to maintain accuracy in one report in the prescribed format. One should always go for professional consultancy for business appraisal. Manual business valuation might not be too economical for a small business firm. It is always advisable to employ online business valuation software which are not only cost effective but also comprehensible to any reader. These software are so programmed that they can generate any type of report as desired by the user. The only requirement is the availability of all relevant information as software input.

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