How to assemble the complete credit history
You will need to assemble the following information when you are preparing an opinion as to the value of your business. Professional valuers will, as a minimum, also require this information to provide you with a formal valuation.
Background information
A short narrative background of the business. (Type of business, date commenced, location, number of employees, number of owners, plus anything else you think is relevant.) Legal structure of business; company or trust or partnership. Provide diagrammatic structure if necessary.
Finaneials
Full financials (profit and loss and balance sheets) for at least the previous three years of all entities involved in the business. Profit and loss and cash flow projections for at least two years. Full debtors’ listing. Stock details. List of assets – depreciation schedule.
Premises details:
a) Location of business, clarify whether city, suburban or country where this is not obvious.
b) Number of branches and locations.
c) Properties owned or leased?
d) Lease details, plus a copy of all leases.
e) Owned property details, including: Description and estimated value. Is property to be valued? (If so, the valuer will advise what information is required.)
Taxation returns
Where business is sole trader or partnership, taxation returns for the last three years should be provided. Taxation returns are not usually required to value companies.
Franchises, licences, etc.
If the business operates under a franchise or licence agreement, or is reliant on agency agreements for its trade, full details of these and copies of the relevant agreements should be provided.
Staff details
These should include: Management: number and qualifications. Technical: number and qualifications. Support staff: number and qualifications.