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Business Valuation Template

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Business Valuation Template

This Business Valuation Agreement (the "Agreement") is entered into as of by and between:

Whereas

WHEREAS, Valuation Provider: is engaged in the business of providing independent business valuation and advisory services and is duly qualified to perform the valuation described herein;

WHEREAS, Client Name: is the owner or authorized representative of the subject business identified as Business Name: and requests a valuation for the purpose described below;

WHEREAS, the parties wish to set forth the scope, assumptions, compensation, confidentiality obligations and other terms governing the engagement described in this Agreement.

Scope of Work

Valuation Parameters

Valuation Date:    Purpose of Valuation:

Income Approach    Market Approach    Asset Approach    Other:

Assumptions and Limiting Conditions

Payment Terms

Balance Due Within days of invoice.

Late fee of % per month on overdue balances, compounded monthly. Minimum late fee: $

Delivery

Estimated Delivery: days following receipt of required documentation and initial deposit. Specific deliverables: final written valuation report and executive summary, unless otherwise agreed.

Term and Termination

Engagement Start Date:    Engagement End Date (if applicable):

Either party may terminate this Agreement upon written notice of days to the other party. Termination will not relieve Client of obligation to pay for work performed and expenses incurred up to the effective date of termination.

Confidentiality

Each party agrees to maintain in confidence all non-public information disclosed by the other party in connection with this engagement and to use such information solely for the purposes of performing obligations under this Agreement. Confidential information does not include information that is or becomes publicly available other than by breach of this Agreement, or is already known by the receiving party without obligation of confidentiality. The Valuation Provider shall not disclose the Client's confidential financial information to third parties except as required by law or with Client's prior written consent.

Recipient acknowledges that unauthorized disclosure could cause irreparable harm and consents to injunctive relief in addition to any other remedies.

By checking this box the signatory certifies that they have read and accept the confidentiality terms set forth above.

Liability and Reliance

The Valuation Provider will perform services in a professional manner consistent with industry standards. Client acknowledges that valuation conclusions are opinions based on available information and assumptions. Except for gross negligence or willful misconduct, the Valuation Provider's total liability to Client for any claim arising out of this engagement shall not exceed the total fees paid under this Agreement.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

Entire Agreement

This Agreement, including any attached engagement letter or exhibits, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. No amendment or modification will be binding unless in writing and signed by both parties.

Acceptance

The parties hereto have read and understand this Agreement and agree to be bound by its terms. Execution by electronic signature or other electronic means shall be deemed an original signature for all purposes and shall have the same force and effect as an original signature.

Valuation Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What the Business Valuation Template Is

The Business Valuation Template is a standardized, fillable document used to summarize the financial, operational, and market data needed to estimate a company's value. It organizes historical financial statements, adjusted earnings, asset schedules, owner compensation adjustments, comparable company data, and valuation assumptions so analysts and business owners can apply income, market, or asset-based approaches consistently. The template supports clear disclosure of methodology, assumptions, and calculation steps and creates a single record that can be reviewed by advisors, lenders, or prospective buyers for due diligence, financing, merger or exit planning.

Why a Standard Template Matters

The Business Valuation Template standardizes inputs and outputs to reduce ambiguity in valuation work. It improves transparency of assumptions, speeds review by advisors or buyers, and creates an auditable record suitable for financing, buy-sell planning, tax reporting, or internal strategic decisions.

Why a Standard Template Matters

Who Typically Completes or Requests This Template

Finance teams, CPAs, business brokers, M&A advisors, lenders, and company owners commonly complete a Business Valuation Template for valuation or due diligence.

  • Private company owners and founders who need independent value estimates for exit or financing decisions.
  • CPAs and valuation specialists preparing reports for tax, estate, or shareholder disputes.
  • Lenders and investors requesting standardized financial summaries during underwriting or loan approval.

Using a consistent template helps align expectations between preparers, reviewers, and signers and reduces the chance of missing data during negotiations.

Signatory Roles and Preparers

CEO / Owner

When signing, CEOs or owners confirm accuracy of the provided information and authorize use of company records. Their signature attests to completeness of disclosures used in valuations and may be required by lenders, investors, or courts as evidence of authenticity.

Valuation Analyst

Valuation analysts, CPAs, or accredited appraisers prepare calculations, document assumptions, and reconcile inputs. Their professional opinion and attachments form the basis of the reported value; include credentials and contact details in the final template for reviewer follow-up.

Essential Sections to Include in a Professional Template

Core sections of a professional Business Valuation Template cover financials, adjustments, valuation approach, supporting schedules, assumptions, and reconciliation of results into a clear conclusion.

Financial Statements

Attach three to five years of balance sheets, income statements, and cash flow statements. Include notes, tax returns, and any restatements to support adjustments and normalize discretionary items.

Owner Adjustments

Document adjustments for owner compensation, related-party transactions, and nonrecurring expenses to arrive at normalized earnings. Explain methodology and show numeric adjustments with supporting documentation.

Valuation Methods

List selected approaches—discounted cash flow (income), guideline public company multiples (market), and adjusted net asset (asset)—and explain why each method is applicable or excluded.

Assumptions & Forecasts

Include growth rates, discount rates, terminal value assumptions, and key drivers. Provide sensitivity ranges and cite sources or benchmarks used for each assumption.

Comparable Data

Attach comparable company or transaction multiples, peer group selection criteria, and calculation worksheets showing application of multiples to the subject company's metrics.

Conclusion & Reconciliation

Summarize resulting values by approach, reconcile differences, present a reasoned valuation range, and state the selected reference value with supporting rationale.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II; ISO 27001
Privacy: GDPR and CCPA compliance
Health Data: HIPAA compliant with BAA
Legal Framework: ESIGN and UETA support
Accessibility: WCAG 2.0 Level AA

Step-by-Step: Complete and Validate the Template

Follow the ordered steps below to complete, validate, and finalize the Business Valuation Template prior to sharing with external reviewers.

  • 01
    Gather Documents: Collect financials, tax returns, and schedules.
  • 02
    Populate Fields: Enter numeric values, notes, and references for each section.
  • 03
    Run Calculations: Apply DCF, multiples, or asset approaches and check math.
  • 04
    Review & Sign: Have advisor review and authorized signer sign the final report.

How to Configure an Online Review and Signature Workflow

Configure an online review and eSignature workflow to route the Business Valuation Template to advisors, signers, and records storage automatically.

Field Configuration
Upload Template PDF or DOCX | preserve tables
Signer Order Sequential or parallel routing
Authentication Email, SMS code, or KBA
Archive Location Box, Google Drive, or internal repo

Where to Send a Completed Template

After completion, route the Business Valuation Template to the intended recipients and filing destinations based on the transaction purpose and regulatory needs.

  • Lenders: Attach to loan packages during underwriting.
  • Buyers: Provide as part of a due diligence data room.
  • Tax Advisor: Use for tax reporting and valuation support.
  • Internal Records: Store signed copy in company records repository.

Technical Requirements for eSigning and Storage

Use an eSignature platform that produces tamper-evident PDFs, captures audit trails, and supports required authentication for valuation report signers.

  • File Formats: PDF and DOCX accepted
  • Integrations: Google Drive, Box, NetSuite
  • Authentication: Email, SMS, SSO options

Typical Timelines and Planning Considerations

Timelines depend on transaction type; allow time for data collection, review, and professional sign-off before target closing or filing dates.

Data Collection Deadline:

Allow 7–21 days for historical statements and schedules.

Draft Delivery to Advisor:

Deliver draft at least 5–10 business days before review.

Final Report Delivery:

Provide final signed valuation before LOI acceptance or closing.

Use for Tax Filings:

Attach valuation to tax filings by respective deadlines.

Retention Start Date:

Record retention begins on the effective date of valuation.

Common Preparation Pitfalls to Avoid

  • Incomplete financial records impede reliable valuation and force large, conservative adjustments that may misstate fair value; gather audited or reconciled statements whenever possible.
  • Unsubstantiated owner compensation add-backs can be challenged by lenders or tax authorities; document benchmarking data and a clear rationale for each adjustment.
  • Mixing accounting bases (cash vs accrual) without reconciliation creates errors in EBITDA and multiples; normalize accounting basis across all inputs before modeling.
  • Late circulation to stakeholders causes rushed reviews and increases the likelihood of calculation or disclosure errors; plan review cycles and sign-off deadlines in advance.

Consequences of an Incorrect or Incomplete Valuation

Impaired Transactions: Deal terms may be renegotiated
Tax Risk: IRS challenges and penalties
Lender Rejection: Loan approval may be denied
Legal Disputes: Shareholder litigation risk
Reputational Harm: Credibility loss with stakeholders
Data Breach Risk: Regulatory fines possible

eSignature Pricing and Feature Comparison (signNow first)

Overview of starting price and baseline feature availability across common eSignature vendors. Do not rely on this table for final procurement decisions; consult vendor pages for plan details.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes (Business Premium) Varies by plan Varies by plan Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Varies by plan Varies by plan Varies Varies
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-World Examples of How Templates Are Used

Selected examples show how companies used structured valuation templates to streamline review and signing in different transaction contexts.

Optica Ventures — Investor Review

Optica consolidated investor data and standardized assumptions for all offers

  • The interface simplified distribution to partners
  • Centralizing assumptions and supporting schedules cut follow-up requests and sped due diligence, improving clarity during negotiations and reducing time to term agreement.

Martin Properties — Real Estate Sale

A property owner used the template to normalize property-level revenues and capex schedules

  • The template worked across devices
  • Delivering a single signed valuation file reduced closing delays, avoided in-person signature collection, and saved travel and administrative time.

Practical Tips to Improve Accuracy and Reviewability

Adopt consistent procedures and documentation habits when preparing Business Valuation Templates to improve accuracy and defensibility during review.

Document Every Adjustment with Source and Rationale
For each add-back or normalization, attach source documents, explain the rationale, and quantify the effect. Clear documentation reduces audit risk and helps reviewers replicate or challenge adjustments logically.
Reconcile Accounting Basis and Reporting Periods Across Financials
Ensure all historical statements use the same accounting basis. If cash and accrual records differ, provide reconciliations and restatements to produce consistent metrics such as EBITDA used in valuation models.
Include Sensitivity Analysis and Scenario Ranges
Provide high/low scenarios and a sensitivity table showing how valuation responds to changes in growth, margins, and discount rates. This reduces reliance on a single point estimate.
Keep an Audit Trail for All Versions and Reviews
Track changes, authorship, and dates for each version. Preserve prior drafts and signed copies to demonstrate the evolution of assumptions and to support legal or regulatory reviews.

FAQs: Common Questions About the Business Valuation Template

This FAQ addresses common questions on completing fields, validating assumptions, eSigning, notarization, retention, and correcting signed templates for audit and regulatory purposes.


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