Opinion Letter

The Opinion Letter is an analysis performed by a Business Intermediary that considers the financial conditions of your business. This information is typically used as a benchmark to a business owner and can help you understand the value of your business and provide you with supplemental information that shows how those values were determined.

An Opinion Letter is different than a full Business Valuation since it is limited in scope and does not use all valuation methods. It is a very good option for someone wanting to understand the value of their business but does not need a complete Business Valuation. Business Valuations can cost thousands of dollars and have their place in the context of providing valuations for those needing the information for legal, insurance or other reasons.

For us to put together the Opinion Letter we will need a couple of accounting reports that should be easy to locate. These reports include the following:

  • Interim Profit And Loss Statements
  • Interim Balance Sheet
  • Complete Federal Income Tax Returns (last three years)
  • Assets at Book Value and FMV (includes inventory, fixtures and equipment)

The Opinion Letter is a great tool for a business owner who wants to understand the key attributes of their business that are the basis of the value.