The process varies according to the nature and scope of each engagement. Formal valuation engagements usually include the following:

1. Initial Discussions
   
   We review with our client the purpose and scope of our work and provide an estimate of time and fees required for each phase of the engagement. This is confirmed and formalized with a professional services agreement.
   
   
2. Request for Documents
   
   At the outset of the engagement, we provide a written request for business documents, which are treated with the highest level of confidentiality.
   
   
3. Document Review and Analysis
   
   We review all relevant documents provided by our client and analyze the company's financial history and performance.
   
   
4. Site Visit and Management Interviews
   
   We tour the business premises to inspect the operations and interview management concerning the history and nature of the business and its future prospects.
   
   
5. Industry Research
   
   We research trade journals, market data and the structure of our client's industry. When appropriate, we analyze comparative public company data and interview industry consultants to gain further understanding and insights into our client's business.
   
   
6. Valuation Analysis and Review
   
   We generally develop two or more valuation methods to support our draft valuation, which is reviewed internally and with our client.
   
   
7. Report Documentation
   
   Our findings are typically documented in a draft report, which is reviewed by our client for factual content. Once the draft review is complete, the report is finalized.
   
   
8. Continuing Support
   
   We are always prepared to support our conclusions if necessary.

This depends upon the scope and complexity of the engagement. For formal valuations, our basic list of documents includes the following:

1. Financial statements and income tax returns for the most recent five years and the most recent interim financials.
   
   
2. Federal (or book) detail depreciation schedule as of the most recent date.
   
   
3. Projections, business plans and other forward-looking documents.
   
   
4. Organizational records: articles of incorporation, bylaws, operating agreements, shareholder agreements, etc.
   
   
5. Corporate minutes (or equivalent) for the past three years.
   
   
6. Important contracts with customers and suppliers.
   
   
7. Marketing/promotional materials.
   

The above is usually supplemented with a comprehensive list of documents once we review the scope of the engagement with our client and the basic documents.  All documents and other information provided to BVRI are treated with the highest level of confidentiality and are retained in secured storage for a minimum of five years, unless other arrangements are made with our client.

Our charges are usually based on hourly billing rates commensurate with the training and experience of the individuals assigned to the engagement. Prior to starting an engagement, we review the scope and complexity of the work to be performed and provide our client with a carefully developed written estimate of charges, which is formalized in a professional services agreement.

Fees range from $1,500 to $4,000 for preliminary valuations to more than $30,000 for litigated tax court valuations. A fee advance is required at the outset of each engagement.