ESTIMATE OF VALUE
An estimate of value is useful for negotiations and strategic planning. It is similar to an opinion of value, except that it uses a range of value, instead of an exact value. For example, instead of expressing a value as $10 million, it might use a range of $9 – 11 million.
An estimate of value requires the same rigorous and independent preparation process as an opinion of value, and it conforms to the same standards.
Uses of Estimate of Value
- Establish range of value for negotiations
- Strategic planning for divestiture or expansion
What is an Estimate of Value? – An estimate of value is a report which concludes in a range of value for a specific ownership interest. It is a rigorous and independent process performed by a recognized valuation expert. And, it conforms to standards established within the valuation industry.
- Range of value
- Specific ownership interest (ex. – 25% non-controlling interest in XYZ Corp.)
- Rigorous and independent
- Prepared by a Certified Valuation Analyst
- Conforms to SSVS No. 1 and other industry standards