Thursday, November 20

Valuation Information Checklist

Here is a Sample Valuation Information Request form that can be sent to the management of the company being valued. This is used for companies who have asked you to value their own company for internal purposes. This can also be used for due diligence by management consultants.


If you have any questions, please call at .
NOTE:   This is a generalized information request. If the questions are not relevant for you, please mark N/A or let us know where we can get more information.

A. Financial Information
  1. Financial statements for financial years ending 5 years.
  2. Quarterly financial statements for last 8 quarters.
  3. Financial projections, if any, for the current year and the next three years. Include any prepared budgets and/or business plans.
  4. Central and State Corporate Income Tax Returns and supporting schedules for last 5 financial years.
  5. Details of all ESOPs, Pensions, Employee benefit trusts.
  6. Explanation of significant non-recurring and/or non-operating items appearing on the financial statements in any financial year if not detailed in footnotes.
  7. Accounts payable aging schedule or summary.
  8. Accounts receivable aging schedule or summary and management’s general evaluation of quality and credit risk.
  9. Expense classification: fixed/semi-variable/variable.
  10. Method used for inventory reporting purposes (FIFO/LIFO/Wt Average/Others)? If LIFO, can inventories and cost of goods sold be restated on a FIFO basis for each of the past five financial years?
  11. Fixed asset and depreciation schedule as of date of valuation.
  12. Amortization schedules of mortgages and notes payable; and terms of bank notes, credit lines, and/or debt agreement(s) as of date of valuation. 
  13. Dispute with tax authorities or any other regulatory authorities (if any)

B. Products and Markets
  1. Sales and profit contributions analysis by product, product line, service category, customer, subsidiary, and/or location (as applicable). I.e. Detailed Segment Reporting.
  2. Volume analysis for existing product lines for the past five years.
  3. Major products or services added in the last two years (or anticipated) and current expectations with respect to sales potential.
  4. Current product mix and new products under development with expectations.
  5. Products that are manufactured for captive consumption (distinguish proportion for captive consumption and external sales).
  6. Details of profit margins by product line
  7. Top 10 customers of the Company, indicating sales (or sales upon which commissions were earned) and unit volumes for each of the past three financial years.
  8. Major accounts gained (lost) in the last year indicating actual sales in the current year and beyond.
  9. Major competitors (full name, location, size, and estimated market share of each, including yours).
  10. Majority industry publications of interest to management.
  11. Sales and marketing strategy of the company
  12. What are the major raw materials for the production and how are they sourced?

C. Operations and Capital Structure
  1. Provide a brief “Business Description”
  2. Briefly name and describe the operations of all major operating entities, whether divisions, subsidiaries, or departments.
  3. List the top 10 suppliers (or all accounting for 5 percent or more of total purchases) and the level of purchases in each of the past three years (include total purchases by the Company in each year). Include credit terms offered by the suppliers
  4. Identify products on which the Company is single-sourced, or suppliers on which the Company is otherwise dependent.
  5. Dividend policy, dividend history, and prospect for future dividends.
  6. Copy of any existing Employee Stock Ownership Plan.
  7. Copies of all other stock option plans or option agreements, or any other plan providing vested benefits in Company stock. Also list number of options granted and to whom, and the stated exercise price(s) and expiration date(s).
  8. Copies of any appraisals of the stock of the Company made during the last three years.
  9. Give details of Capital Structure (Common stock, Preferred stock, Debt – long term [secured and Unsecured] and Short Term)
  10. Details of Stock Options and Warrants outstanding
  11. Details of pending litigations and potential impact on the company
  12. Details of all feedback provided by customers to the company (including on social media)
  13. Details of all restrictive agreements (e.g. Non compete agreements)
  14. Normal terms of sale and collection period (provide a comparison to industry norms)
  15. Please provide Capital Expenditure plans for the future
  16. Please provide Sales projections for the current year and beyond (if available)
  17. Explain changes in Gross Profit Margins in the last 5 years (price increases, inventory write downs, cost increases etc)
  18. Describe all hidden or unreported intangible assets such as Patents, Leases, Copyrights, Trademark, Long term customer contracts, employment contracts, undervalued securities / investments
  19. What branding activities have been done by the company including on social media such as Facebook Page Likes, and Twitter followers.

D. Facilities
  1. Location, age, and approximate size of each facility. Estimate business volume by major facility.
  2. Ownership of each facility and other major fixed assets. If leased, include name of lessor and lease terms or agreements.  

E. Human Resources
  1. Current organization chart.
  2. Number of employees (distinguish full-time and part-time) at year-end for the last six years including current employee classifications, general wage scales, and approximate rate.
  3. List all union relationships including name of union, date of current agreement, workers and facilities covered.
  4. Elaborate on the Sales Structure (who does the selling) and provide the number of part-time and full-time Company-employed salespersons including compensation arrangements or schedules. 
  5. Description of the management team including current title, age, length of Company service, and background. Also list the annual salary and bonus of each person for the current year and each of the last two years.
  6. Full names of the Board of Directors. For independent members, their occupation.

F. Corporate Documents and Records
  1. Memorandum of Association, Articles of Incorporation
  2. Minutes of Board of Directors and Annual General Meeting for the most recent three years
  3. List of all subsidiary companies and the percentage ownership in each.
  4. Any “related” companies (common ownership, common shareholders, etc.) and briefly describe the relationship(s).
  5. Stock ledger.
  6. All closing statements and purchase agreements related to all purchases of the Company’s stock over the history of the Company.
  7. All closing statements and purchase agreements related to all mergers or acquisitions by the Company up to the valuation date.
  8. Details of all media reporting about the company in the news for the last 3 years.

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