Davis/Chambers & Company, Ltd.
Information Required
Valuation of a Going Concern
A history of the Company - When founded? By whom? General description of growth (non-financial), etc.Five years financial statements.
Five years income tax returns.
Interim financial statements for the period ending on the date closest to the date of value, for both the current year and the prior year.
Financial projections for current or future years.
Current shareholder list including classes of stock, the amount authorized and issued, and its par value.
Listing of fixed assets, original cost, and depreciation.
List of largest customers and sales volumes.
List of largest suppliers and volumes.
List of largest competitors and estimated revenues.
Aged accounts receivable and payable.
Catalogs, product literature, etc.
Recent appraisals if available.
Trade association reports on relevant industry data.
Current order backlog if available.
Organizational chart and key-employee resumes.
Corporate officers' salaries and bonuses.
Description of unusual perquisites.
Description of actual or pending litigation.
Classes of outstanding stock authorized, issued, and par value.
Recent trading history of stock.
Geographic location of assets.
Quality of any marketable securities held.
Description of any equity investments in other companies or joint ventures.
Effective date of evaluation.
Copy of Articles of Incorporation or Partnership Agreement.
Copy of Buy / Sell Agreements.
Copy of the ESOP Plan Documents.
Copy of the most recent ESOP census data.
Information on patents and copyrights - what products, expiration dates, etc.
Valuations for FASB - SFAS No. 141 Compliance
(Business Combinations)
The process is similar to the valuation of a going concern; however, additional information is required with regard to intangible assets.
Copy of the purchase and sale agreement.
A list of any known intangible assets.
Values for fixed assets.
Items listed above in the Valuation of a Going Concern.
Valuations for FASB - SFAS No. 142 Compliance
(Goodwill and Other Intangible Assets)
The process is similar to the valuation of a going concern; however, additional information is required with regard to intangible assets.
List of any previously identified intangible assets.
Items listed above in the Valuation of a Going Concern.
Valuations for FASB - SFAS No. 144 Compliance
(Accounting for the Impairment or Disposal of Long-Lived Assets)
The process is similar to the valuation of a going concern; however, additional information is required with regard to intangible assets.
A list of options and possible redevelopment plans for the long-lived assets.
The cost associated with those options.
The probabilities of achieving the options.
Items listed above in the Valuation of a Going Concern.
We have learned that as the engagement proceeds, the weights and cost assigned to the options will change as attention is focused on the resulting cash flow returns.
Valuation of a Family Limited Partnership
A copy of the partnership agreement and any amendments.
Copies of the past five years tax returns.
A list of the assets and liabilities of the partnership.
Real estate appraisals.Brokerage statements.
Copies of notes receivable.
Information on any sub-partnerships.
Information on any oil & gas holdings.
Biographical information on the General Partners.
Education.
Work history.
List of partners.
Objectives of the partnership.
Purpose of the partnership.
Management objectives (e.g., preservation and appreciation of capital).
Expected management fees to the General Partner.
Expected cost of maintaining the partnership (legal, accounting, etc.).
Distribution expectations (all net income, to cover income taxes, none, other).
Likelihood of liquidation (not before the end of the stated term, other).
IRC § 754 elections. Has one been granted in the past? What is the likelihood one will be granted in the future?
If a business is owned by the partnership, then a business valuation may be required.
