Types of Reports

It's important to note that the business valuation process considers the same items, regardless of the type of report generated. Here's a look at the different types of reports and their uses:

Full Report

A full, written report is the most formal and traditional type of report, and discusses the opinion of value in a comprehensive, detailed, narrative format. This traditional report contains significantly more information than other types of reports, including detailed sections describing national and regional economic conditions and the state of the industry in which the subject business operates. Full reports may be required in litigation engagements.

Summary report

While the valuation procedures used are the same, a summary report is more informal and shorter than a full, traditional report. The summary report typically takes the form of a letter, with much of the narrative material summarized. Significantly shorter in length than the traditional report, summary reports are faster to generate, and therefore can reduce the cost of a valuation engagement. Summary reports may be used in a variety of non-litigation situations, including some divorce settlements, mergers & acquisitions, succession planning, and to meet the requirements of buy-sell agreements. This form of report is not appropriate in most types of litigation - especially when the report would take the place of direct testimony, as in the U.S. Tax Court.