When developing a thorough and detailed business valuation, conducting a site survey of the business is an important step in our proven process.
Don’t you need to be nearby to complete a site survey as part of a business valuation?
For many months during the pandemic, in-person site surveys were not possible as non-essential businesses were shut down or access was limited for the safety of the employees. In these situations, we completed the site survey virtually. The reality, however, is I have been conducting effective virtual site surveys for many years.
Assessing a Site Effectively
For decades, I have been preparing detailed, thorough business valuation reports to substantiate the value of a business for four primary reasons:
- Tax – for settling of an estate or for gifting shares in a business.
- Divorce settlement
- Sale of a business
- Settling a shareholder or business dispute
Whatever the trigger may be, my job is to be thorough in analyzing the business and substantiating how and why the valuation amount was determined.
A site survey is an essential part of substantiating ‘why’ I came to the conclusion I did about the value of the business and with the right expertise and proven process, site surveys need not be done in person.
A Component of a Proven Process
The valuation analysis includes both quantitative and qualitative factors. The site survey is part of the process to confirm basic information about the business including its existence as well as to confirm its physical attributes. I have leveraged site surveys to confirm physical assets on the property as well as organization, cleanliness, room to support growth, etc.
Leveraging technology, I have conducted virtual site visits and management interviews for years via guided video tours enabling me to assess a business and capture the same information I would capture if I was completing a site visit in-person. Using technology, I can ask questions of my tour guide and obtain images as input to developing the business valuation report.
Technology enables us to be efficient, while adhering to our proven process ensures that a virtual site survey does not compromise the information needed to develop a thorough and complete valuation. It has been my experience for many years that conducting effective virtual site tours is not only possible, but with our proven process it is easily repeatable to serve our clients across the United States and in other countries.
It comes down to expertise and a proven process. Geography need not be a top criteria for choosing a business valuation professional. To learn more, read our recent blog that includes the 3 criteria to focus on when needing a business valuation. A proven business valuation professional knows precisely what information is needed from a site survey and can adeptly gather and analyze that information effectively virtually.
When Values Matter.