Frequently Asked Questions

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"Back of the napkin" valuations with summary letter reports may range from $2,500 to $5,000. Full reports for internal/corporate planning purposes typically run $4,000 to $8,000. Fees increase incrementally, roughly by +$2,250, if discounts for lack of control (or a minority interest discount), lack of marketability, and/or lack of voting rights are needed. Valuation reports for tax and estate planning purposes will include an incremental fee of +$3,000.

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 and the intended users of the report. Generally, the cleaner the company data provided, the less urgent the deliverable timing, and the fewer number of intended users, the lower the fee. And, of course, we can explore options to work with you if budget constraints are in play.

Insight Valuations, at its discretion, may perform new engagements at a lower rate for recurring clients or for updates to prior valuation analyses. This would include a reduced fee of $2,000 per update for up to three quarterly valuation updates, provided in a summary letter report format.

Draft reports are usually delivered within 3 to 4 weeks from receipt of all critical information. Shorter delivery timelines are possible, though they 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.

• Under the Income Approach, we develop either 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, in the context of a business valuation, usually entails development of the Adjusted Book Value (ABV) method. For certain entity types and value premises, such as holding companies (going concern or liquidation premise) or operating companies facing a liquidation scenario, a more in-depth development of the ABV method may be warranted. For an operating company that is a going concern, however, an ABV analysis may provide a basic benchmark representing the lower-range estimate of the subject company's value.

Insight Valuations does not perform valuations to specifically target a desired value or outcome. 

• 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.

• Over the 2 to 3 weeks following receipt of the critical mass of information, Insight Valuations performs market and industry analyses, including a preliminary development of the valuation approaches and methods as outlined above ("How will Insight Valuations appraise my company?"). Over this period, 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, which may or may not be the same as the financially responsible party and/or the subject company of the valuation. The draft report will only be released by Insight Valuations to the client and the intended users.

• After the client and intended users have reviewed the draft report, we discuss any questions, comments and suggested revisions (within reason) to ensure full understanding of the valuation analysis. Any scope changes or "open ended" discussions may result in additional fees.

• Once approved, we finalize the draft report, including removal of draft watermarks and the inclusion of the analysts' signatures.

• Following delivery of the final report, Insight Valuations may allow for additional time (within reason), at no additional cost, for follow-up discussions with the intended users of the report. For example, for a proposed transaction, we may allow for 2 to 4 hours (total) to discuss the valuation appraisal with several potential buyers over separate calls or meetings. However, at a certain point, we may move to an hourly-fee engagement addendum if subsequent discussions continue on an ongoing basis.