Frequently Asked Questions

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While we take into account business owner and management perspectives of the subject company's value, Insight Valuations does not perform engagements to simply arrive at a targeted amount. 

Fees typically range from $2,500 to $5,000 for "back of the napkin" valuations. More comprehensive reports may run up to $10,000.

The facts and circumstances of the engagement may call for a fee outside the ranges presented above depending on the overall needs of the client, the veracity and clarity of the subject company's financial information, and the required timing of the deliverable.

Reports are typically delivered within 3 to 4 weeks from receipt of all critical information. Shorter delivery timelines are possible, though they may come with an expedited delivery surcharge. 

Unless the facts and circumstances of the engagement preclude consideration of certain methods, or we are otherwise directed to only consider (or not consider) a particular approach or method, Insight Valuations considers development of methods under the Income, Market and Cost approaches.

• Development of the Income Approach usually includes the discounted cash flow (DCF) method or a capitalization of earnings method. These methods most directly consider the subject company's historical and projected financial and operational performance.

• Under the Market Approach, we typically develop indications of value by way of the guideline public company (GPC) method and the guideline transactions (or mergers & acquisitions, M&A) method. These methods apply market-based valuation multiples to the subject company's metrics, providing for an indication of value for the company from the market-based perspective.

• The Cost Approach to a business valuation most often entails development of the Adjusted Book Value (ABV) method. For certain entity types and value premises, such as holding companies or operating companies facing a liquidation scenario, the ABV method may be the primary indication of value. For an operating company that is a going concern, however, an ABV analysis may provide for a basic benchmark representing the lower-range estimate of the subject company's value.

• We first determine the required scope of work for the purpose and intended use of the analysis. Generally, Insight Valuations requires 50% of the total engagement fee to be paid before starting work. However, certain engagements may call for a higher retainer payment to start work, either 75% or full payment up front.

• Insight Valuations then sends an information request for the company data pertinent to the appraisal. When a critical mass of information is received - typically including the subject company's historical financial information, organizational documents, and projections, forecasts, or budgets - we can begin our analysis even if receipt of additional information is pending.

• The valuation analysis occurs over the next 2 to 3 weeks, during which we ]maintain ongoing conversation with company management to ensure our understanding of the company's industry and service markets, and its operational and financial performance. These conversations include discussions of the company forecast and budgets. If needed, Insight Valuations can develop a company forecast with input and guidance from management.

• When the remaining balance of the total engagement fee is paid, Insight Valuations delivers the draft report to the client.

• After the client and intended users have reviewed the draft report, any questions, comments and suggested revisions are discussed and implemented as appropriate. Any scope changes resulting from these discussions may result in additional fees.

• Once approved, we finalize the draft report.

• Following delivery of the final report, Insight Valuations may allow for additional time (within reason) for follow-up discussions with the intended users of the report at no additional cost. Further or ongoing consultations may call for incremental fees or a transition to an hourly-rate based engagement.