Discounted Cash Flow Analysis is a widely accepted valuation method used to estimate the value of an investment based on its future (projected) cash flows.
Detailed Financial Projections
Based on the historic financial performance, the financial, market and economic analysis, the industry analysis, and input from management, Detailed Financial Projections are prepared.
Industry Analysis
Industry Analysis – A review of the industry specific to the assignment is performed as of the date of the valuation and considered during the valuation process in accordance with IRS Revenue Ruling 59-60.
Financial, Market and Economic Analysis
Financial, Market and Economic Analysis – A review of the financial, market and economic conditions is performed as of the date of the valuation and considered during the valuation process in accordance with IRS Revenue Ruling 59-60.
Explanation of Value Conclusion
A detailed Explanation of Value Conclusion is included in the report.
Fair Market Value Calculation
Fair Market Value is defined in Revenue Ruling 59-60 as “the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”
Certified Report
Certified Report indicates that the valuation has been performed and its report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) by an accredited appraiser.
Accredited Appraiser
An Accredited Appraiser holds a professional designation from an accepted organization. Sarah Breitreiter holds a Business Certified Appraiser (BCA) designation from the International Society of Business Appraisers (ISBA).
Methods
A valuation Method is a specific way to determine value.