Annual financial statements and balance
sheets for the last five years and interim ones for
the quarters ending closest to the valuation date,
as well as forecasts or projections of future
earnings and fees.
Federal and state income tax returns of
the company and any subsidiaries for the prior five
Other financial data
General ledgers, accounting journals,
payroll and sales tax returns, bank statements and
Records of cash accounts and any
significant cash investments. An aged
accounts-receivable listing and management’s
estimate of the amount of receivables on the list
that will not be collected and an explanation of
how those amounts were determined.
The quantity, a description and the
cost of supplies and inventory, as well as the
method of pricing the items.
A fixed-asset register or
depreciation schedule that includes all owned real
estate and equipment, dates of acquisition, cost
of the assets, depreciation method, useful life
and the accumulated depreciation of each.
A detailed list of liabilities, notes
payable and other interest-bearing debt.
Operating, capital or fee budgets
that project to periods after the valuation date.
The amounts and the nature of
compensation. The valuator should see the schedule
of any company-owned life insurance.
A list of all owners, including the
percentage of their individual interests, and the
company’s organization chart.
Customer base and size of the
marketplace, both geographically and in dollars.
A description of products or
services. The valuator should be apprised of any
patents, trade secrets or contracts that prevent
competitors from selling items in the company’s
A list of any suppliers that are the
company’s sole source of any product. The valuator
also should seek information on the general
financial health of all suppliers.
Legal documents |
Records of leases and loans and whether
they’re receivable or payable.
“Organic” documents (articles of
incorporation, bylaws, partnership agreements,
articles of organization and operating agreements,
Any agreements between the owners of
the company. The valuator should look at details of
any stock options, rights, warrants or deferred
Board minutes for the past five years.
Contracts or agreements that will have
an impact on future operations.
Documents related to any current
litigation, including pending or threatened
Employment agreements of key managers,
owners and employees. The CPA/valuator also should
review data on employee benefit plans, including the
documents establishing the plan as well as the
previous five years of the plan’s tax returns.
Reports of examination by any
government agency such as the EPA, OSHA, the IRS and
Patents, copyrights, trademarks or
Contingent liabilities including
guarantees, warranties or other off-balance-sheet
financing such as letters of credit.
Property tax assessments and
insurance policies covering the company’s
The name of, and primary activity at,
each location the company maintains. The valuator
also needs an estimate of when equipment and
facilities will require replacement—and the cost
of doing so.
A list of trade associations (whether
company is a member or not).
The company’s standard industrial
Trade publications and financial
surveys focused on the entity’s line of business.