We certainly value quality over speed when it comes to something as important as a valuation. Our standard answer to how fast we can provide a valuation is ten (10) business days from when we receive the information we need from the client. We can get it done faster if we are told a specific date we need to hit (e.g. upcoming board meeting). The big caveat in there that many clients do not think about is the phrase, “from when we receive the information we need from the client.” Most clients have the information we request readily available. However, other clients have the information spread between various executives and their outside counsel. So if time is of the essence, getting everything together can speed things up tremendously.
This is dependent on the individual company and can vary widely depending on the valuation service provider. There are valuation service providers out there that do not have our benefits of scale and technology. They also likely do not benefit from the excellent partners that we have. By working with outsourced CFO services, cap table management services, and other partners we are able to cut significant time out of the process that most providers have to spend in the gathering and structuring of data. So although the price may vary depending on the individual situation, almost certainly companies will get the best possible price/value combination by working with Right Value either through our partners or directly.
The valuation process is dependent on the situation of the individual company. The general summary is that once a valuation service provider is engaged, the provider will need organizational, financial, and capital structure due diligence that most companies have fairly available without too much trouble. The most difficult tasks are typically either a long-term forecast of financial results or for very early stage companies an analysis of the cost to recreate the IP the company has created.
By asking some simple questions you can hone in on the right valuation date for your company and specific set of circumstances.
How soon do you need the valuation?
What is the most recent period for which you can provide financials?
If you are funding the business with venture investments, when did you close your most recent funding round?