Business Valuation Services: What’s Included and How to Choose the Right Firm
- Julianna Francesca
- 57 minutes ago
- 3 min read
Why Every Valuation Is Not Created Equal
Many business owners think a valuation is a single number on a report. In reality, that number depends entirely on who calculates it and how.
A strong valuation is more than a financial document. It is a strategic analysis that connects your company’s data, operations, and positioning to the market forces that drive price.
Choosing the right valuation service is not just about compliance. It is about confidence.
The Three Levels of Valuation Engagement
Understanding what you are buying helps you avoid paying too much for too little insight.
Calculation of Value: A high-level estimate based on key financial inputs. It is often used for internal planning or early-stage discussions. It provides direction, not a formal opinion.
Caution: This is typically what an accountant will provide when preparing the P&L, Balance Sheet, and Tax Returns. It is more focused on what the owner wants to see than what a buyer will pay. Set your expectations accordingly when you see these numbers that you and your accountant have built.
Costs: Accountants will typically prepare this as part of their general work for you. Occasionally there is an additional few hundred dollars of charges.
Opinion of Value: A deeper analysis prepared by a valuation professional. It uses industry data, comparables, and risk adjustments to produce a supported conclusion of value.
Caution: This type of analysis is only as good as the inputs provided. It is critical that you, as the owner, are honest and transparent with yourself and the valuation professional. If you put in numbers that are skewed or inflate any aspects, buyers will catch this and your valuation will not be accurate.
Costs: These are extensive reports with research to support so expect to pay $5,000-$10,000 for a good quality report.
Certified Appraisal: A formal report prepared by a certified business valuation analyst that meets professional standards for legal, tax, or lending purposes.
Caution: Not everyone who claims to be certified is in fact certified. Confirm their credential and issuing body (IBA, NACVA, ASA, AICPA) and be sure to ask how many valuations they complete annually. The CBA is awarded by the Institute of Business Appraisers (IBA), one of the longest-standing professional organizations in the business valuation field. It is considered one of the most rigorous and respected credentials specifically focused on private company valuation.
Costs: Depending on how many aspects of the business you need appraised and the size of your business, the costs range $10,000-$35,000+.
Each level serves a different purpose. For most business owners planning a sale, partner exit, or growth-to-exit strategy, a mid-tier Opinion of Value ($5K–$15K) offers the best balance between accuracy, depth, and ROI.
Remember: You are not paying for a number. You are paying for the level of defensibility and strategic insight behind that number.
What a Strong Valuation Service Includes
A credible valuation combines financial data with real-world insight. The best firms include both quantitative and qualitative factors, such as:
Financial Analysis: Three to five years of normalized financials, adjustments for one-time expenses, and owner compensation.
Market Benchmarking: Comparable transactions, industry multiples, and regional market trends.
Risk Assessment: Customer concentration, management depth, supplier dependency, and operational consistency.
Growth and Scalability Review: Systems, process documentation, and market opportunity.
Qualitative Value Drivers: Brand strength, marketing infrastructure, and transferability.
A good valuation service does not only tell you what your business is worth. It tells you why and what would make it worth more.
Why the Narrative Matters
Financial data answers “how much.” Narrative answers “why.”
Buyers and lenders care about the story your numbers tell. Smart valuation firms include context about:
Market positioning
Brand recognition
Customer stability
Marketing systems
Operational structure
Numbers without narrative limit the multiple you can justify. The right valuation partner connects both, showing how your company’s structure and strategy support continued performance.
How to Choose the Right Firm
When comparing business valuation services, ask:
What methods will you use and why?
How do you account for intangible assets such as brand equity or reputation?
What experience or credentials do your analysts hold?
How do you ensure confidentiality?
How is risk quantified and weighted in your analysis?
The right partner can explain complex valuation factors in plain language and show you how each one applies to your business. The right partner will also never tell you just what you want to hear - they will tell you the facts.
Key Takeaway
A valuation is not a number. It is a strategy.
The firm you choose should help you understand what drives your business’s value and how to improve it. A complete valuation combines numbers, narrative, and market insight.
Next Step
If you want a valuation that reveals both your current worth and your potential, start with a Market-to-Multiple™ Valuation Report. It connects your marketing, operations, and financial performance to the factors that shape enterprise value.