Different Business Valuation Reports

The business valuation report plays an important role in the critical decision-making moment of the company. As there are several business valuation methods, therefore, before taking into account, it is necessary to identify if the business valuation is acceptable for the purpose, and that is analyzed through a business valuation report following certain parameters.

What is a Business Valuation Report?

The business valuation report is a document recording the analysis to estimate the value of a company or its assets or group of assets based on the performance in the market, industry and economic growth.

What is the purpose of the Business Valuation Report?

The Business Valuation Report is a necessary tool to compute the assessment, which helps in determining the value of the company at the time of:

  • When a company or part of it is offered for sale
  • Merger or acquisition
  • All litigation is pending before the Court
  • For the calculation of the tax
  • At the time of liquidation, insolvency or bankruptcy
  • Sending the finance report to the board of Companies
  • Dissolution of the company.

What are the types of Business Valuation reports?

Generally, there are four types of business valuation reports that are in use, those are as follows:

Comprehensive Report:

The net worth calculated from the assets, shares or the interest earned by the firm is analyzed. A comprehensive report is prepared based on the industry and other relevant factors. As with the financial statements, the business valuation reports are used for multiple purposes, even in Court as evidence or for presenting as information. Therefore, preparing a business valuation report requires efficient skill and knowledge of the legal and regulatory provisions. 

Calculation Report:

A rough work or calculation made from the assets, shares, or interest earned by the firm, that does not involve much research or analysis, is called the calculation report of business valuation. This report is not used for recording or filing. This is used for referral purposes when the company makes plans for any internal management or other relevant purposes, where the business valuation report shall not be attached.

Estimated Report:

The estimated report of business valuation is utilized for referral purposes, where the importance of the report is neither as high as the comprehensive report, nor as low as the calculation report. This report is not always required to be accurate to the legal and regulatory point of view, but that must be enough to provide good knowledge to assume any impression about the company.

Limited Critique Report:

The limited critique reports of a business valuation is feedback on another report of valuation of the company about the profit and loss, but not about the business valuation appropriately. This method is limited to certain issues in the form of a general suggestion of whether the business valuation report is acceptable or not. This report is used in litigation matters and the presentation of the information before the court.

How important is a Business Valuation Report?

The business valuation report has a certain importance, as it is always necessary to know the performance of the business and its future aspects. Some of the importance of a business valuation report is listed here:

  • This provides a clear update on the assets of the company
  • It conveys the resale value of the company in the present period
  • It updates the true value of the company from time to time
  • It helps make decisions at the time of merger and acquisition
  • It is presented before investors to give a specific idea regarding the performance and future of the business


The business valuation report is important when there is a financial dispute or a requirement of a financial idea arises. An accurate business valuation report involves long calculations and multiple units, a quicker understanding and analysis of necessary factors makes it easier to understand the net worth.

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