Branson Valuation

Topics: Generally Accepted Accounting Principles, Business valuation, Asset Pages: 9 (1921 words) Published: August 28, 2013
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Business Valuation Report

The Branson Trucking Company

As of December 31, 2007

for

Dave James

by

Hien Nguyen
Forensic Accounting
Tuesday 5:30-8:30 PM

November 29, 2011

Dear Dave James,

I have been asked to determine the fair market value of Branson Trucking Company as of December 31, 2007 for the purpose of determine your share in the business.

The definition of fair value market value is the price at which the property would change hands between a willing buyer and willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of all relevant facts.

Based on the information contained in the following narrative report, in my opinion, the fair market value of 100% interest in Branson Trucking Company as of December 31, 2007 is $4,256,349.

My opinion of value is subject to the assumptions and limiting conditions set forth in this report.

Respectfully submitted,

Hien Nguyen
Forensic Accounting

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Table of Contents

Important Notice and Limiting conditions4

Valuation Approach 5

Industry Overview6

The Assets Approach7
* Adjusted Net Worth
* Liquidation Value

The Income Approach8
* Financial Analysis
* Discounted Future Earning
* Capitalization of Income Method

Summary of Valuation Methods11

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Important Notice & Limiting Conditions

This business valuation report was designed to give an opinion of fair market value. It is not an accounting report, and it should not be relied upon to disclose hidden assets or to verify financial reporting. It is an opinion of the value of a 100% interest as December 31, 2007.

I have accepted the unaudited financial statement of Branson Trucking Company without testing their accuracy or completeness. The financial statements consist of balance sheet and income statements. The accuracy of the financial statements is the sole responsibility of the management of Branson Trucking Company.

I have relied on representation made by the owner about the background and history of the business. The management of Branson Trucking Company has acknowledged to me that the information they provided was completed and accurate. However, I assume no responsibility for the accuracy of information provided to me by the business’s management.

All facts and data as set forth in this report were obtained from source considered to be reliable. However, I assume no liability for the accuracy of the information provided to me by others.

This valuation report is based upon facts and conditions existing as of the date of valuation. I have not considered subsequent events. Unless specially requested by the client and agreed upon by us, I have no obligation to update my report for such events and conditions.

The estimate of value opined to in this report applies only to Branson Trucking Company as of December 31, 2007. In addition, my estimate of value is valid only for the purpose of determined your share of the business.

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Valuation Approach

The purpose of this valuation is solely to provide an independent valuation opinion. As such, this valuation report is intended for use by Mr. Dave James only.

The definition of fair market value is the price at which the property would change hands between a willing buyer and seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of all relevant facts. The value of any business can be determined three ways, formally known as the business valuation approaches: * Asset Approach

* Income Approach
* Market Approach
Each approach offers you a different view of what a business is worth....
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