Are you looking to assess the value of your pharmacy business? Maybe it’s for restructuring, an upcoming sale, or a dispute resolution. Whatever the reason, we can provide you with an independent assessment of its value. Our analysis will ensure that all factors are considered and you get an accurate picture of what your business is worth. So don’t hesitate to reach out – our team is here to help.
A Calculation of Value occurs when the client and the valuator agree on a specific valuation method and how that method will be applied. Simply, the valuation analyst does not provide an opinion of value but rather calculates a value based on methods agreed upon with the client. For a Calculation of Value report for a pharmacy valuation, we typically employ a market-based method where we compare the subject business to similar pharmacies that have sold. We use a multiple of cash flow to calculate the fair market value.
Calculation of Value reports are not suitable for any situation where there is a possibility of litigation or when accounting standards have not been followed. It requires less in-depth work compared to a Conclusion of Value report, and therefore, it is usually cheaper.
A Conclusion of Value requires the application of valuation approaches or methods deemed in the valuator’s professional judgment to be appropriate. The resulting report for a Conclusion of Value includes a comprehensive analysis in which the valuator must consider all three valuation approaches: asset, market and income. The valuator also takes into account the market, economy, competition and company-specific risk factors. The report is an opinion of value based on expertise and experience, given the facts and circumstances of the business.
Because a Conclusion of Value report is more time-consuming, requires adherence to reporting standards and is generally more in-depth than a Calculation report, it is normally more costly than a Calculation of Value report.
Once a signed valuation engagement is in place, the process of completing a business valuation involves data collection, financial modelling, and ensuring that all data is normalized. We will have a call to ensure this is done correctly. After this step is complete, a draft report is drawn up for review by the client. Once they have had the opportunity to review it and all questions are answered, the final report can then be delivered. Typically, a valuation process lasts between four to six weeks. However, this timeline may vary depending on how quickly the client can provide us with the necessary information and the quality of those materials.