Best For:
- Internal planning
- Preliminary sale discussions
- Buy-sell planning
- Strategic decision-making
- Pricing exploration
Valuations
Understanding the Two Primary Types of Business Valuation Services
When business owners hear the term “business valuation,” they often assume there’s only one type of report. In reality, there are two primary types of business valuation services, each designed for different needs, levels of scrutiny, and intended users. GPC Group offers each and both are overseen by a Certified Valuation Analyst (CVA).
Calculation Engagement
A Calculation Engagement provides an estimate of value based on agreed-upon procedures between the valuation analyst and the client.
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Valuation Engagement
Feature | Calculation Engagement | Valuation Engagement |
|---|---|---|
| Scope | Limited | Comprehensive |
| Report Type | Calculation Report | Full Valuation Report |
| Level of Detail | Moderate | Extensive |
| Defensibility | Limited | High |
| Cost | Lower | Higher |
| Turnaround Time | Faster | Longer |
| Court/IRS Suitable | ❌ Generally No | ✅ Yes |
Which One Is Right for You?
If your valuation will be reviewed by courts, the IRS, lenders, or opposing counsel, a Valuation Engagement is typically required. If you’re making internal business decisions and need a reliable estimate at a lower cost, a Calculation Engagement may be appropriate.
Choosing the right valuation depends on:
Not Sure Which Service Fits Your Needs?
Our valuation professionals will walk you through your objectives and recommend the appropriate level of service — ensuring you receive the right valuation for your specific situation, without overpaying for unnecessary scope.