Certified Valuation
A valuation signed by an accredited appraiser
Send us your financials, and our team handles the full appraisal. Our ABV- and CFA-accredited appraiser examines the specific circumstances of your business and normalizes the financials by separating out one-time, non-recurring transactions. We build valuation models tailored to your situation and deliver a robust report documenting all the underlying context, assumptions, and justifications, so the conclusions hold up to scrutiny. The report can be used by business partners to determine each owner's stake, by an SBA lender to underwrite an acquisition loan, or by your attorneys and tax advisors.
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Business Information
Your business details and industry.
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Financial Documents
Connect QuickBooks, or upload your statements and tax returns.
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Your Report
Our team prepares the report with the supporting detail required to meet regulatory bodies' requirements (e.g., SBA, IRS).
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Sample Report Highlights
RIVERSIDE
PLUMBING LLC
Valuation Summary
Business Name
Riverside Plumbing, LLC
NAICS Code / Industry
238220 (Plumbing, Heating, and Air-Conditioning Contractors)
Enterprise Value
$1,950,000
The value is arrived at weighting the results from different valuation methods as follows:
Valuation Method
Value by Method
Adjustments for:
MarketabilityControl
Adjusted Value
Weighting
Weighted Value
Market Approach
Precedent Transaction Analysis
$1,859,545
0%0%
$1,859,545
60%
$1,115,727
Income Approach
Capitalization of Earnings
$2,075,000
0%0%
$2,075,000
40%
$830,000
Value Conclusion
Fair Market Value: 100% Interest - Private, Control Basis - Excluding Non-op Assets
100%
$1,945,727
Fair Market Value: Excess Working Capital
$0
Fair Market Value: Other Nonoperating Assets
$0
Fair Market Value: 100% Interest - Private, Control Basis - Including Non-op Assets
$1,945,727
Interest Appraised
100%
Value Conclusion
$1,945,727
Value Conclusion (rounded)
$1,950,000
Valuation Report
3
RIVERSIDE
PLUMBING LLC
The Company's financial data snapshot is the following:
| 2023 | 2024 | 2025 | YTD | Normalized Operations | |
|---|---|---|---|---|---|
| Gross Revenue | $2,010,000 | $2,240,000 | $2,480,000 | $1,320,000 | $2,480,000 |
| COGS | $1,005,000 | $1,120,000 | $1,240,000 | $660,000 | $1,240,000 |
| Gross Profit | $1,005,000 | $1,120,000 | $1,240,000 | $660,000 | $1,240,000 |
| Total Expenses | $1,730,000 | $1,935,000 | $2,116,000 | $1,140,000 | $2,116,000 |
| Operating Expenses | $725,000 | $815,000 | $876,000 | $480,000 | $876,000 |
| EBITDA | $280,000 | $305,000 | $364,000 | $180,000 | $364,000 |
| Add Backs | $54,000 | $63,000 | $68,000 | $36,000 | $68,000 |
| Adjusted EBITDA | $334,000 | $368,000 | $432,000 | $216,000 | $432,000 |
| Owners Compensation | $158,000 | $172,000 | $185,000 | $98,000 | $185,000 |
| SDE | $492,000 | $540,000 | $617,000 | $314,000 | $617,000 |
| Depreciation | $37,000 | $41,000 | $44,000 | $23,000 | $44,000 |
| Interest | $20,000 | $22,000 | $24,000 | $13,000 | $24,000 |
| Amortization | $0 | $0 | $0 | $0 | $0 |
| Adjusted EBIT | $297,000 | $327,000 | $388,000 | $193,000 | $388,000 |
| Tax | $47,000 | $52,000 | $62,000 | $31,000 | $62,000 |
| Net Op Profit After Tax | $250,000 | $275,000 | $326,000 | $162,000 | $326,000 |
| Cap Ex | $31,000 | $35,000 | $38,000 | $19,000 | $38,000 |
| Net Working Cap | $165,000 | $186,000 | $203,000 | $203,000 | $203,000 |
| Delta Net Working Cap | $0 | $0 | $0 | $0 | $0 |
| FCF | $256,000 | $281,000 | $332,000 | $166,000 | $332,000 |
Valuation Report
6
RIVERSIDE
PLUMBING LLC
Market Approach: Precedent Transactions Analysis
We utilized BVR's Dealstat data from the last 5 years. We chose NAICS codes
238220 (Plumbing, Heating, and Air-Conditioning Contractors) for the analysis.
| Implied Price | Price/Net Sales | Price/SDE | Price/EBITDA | |
|---|---|---|---|---|
| Top 10% | $2,855,190 | 1.15 | 4.62 | 6.62 |
| Top 25% | $2,286,250 | 0.92 | 3.70 | 5.30 |
| Mean | $2,050,220 | 0.83 | 3.32 | 4.75 |
| Median | $1,859,545 | 0.75 | 3.01 | 4.31 |
| Low 25% | $1,488,685 | 0.60 | 2.41 | 3.45 |
| Low 10% | $1,117,825 | 0.45 | 1.81 | 2.59 |
We chose to use SDE and EBITDA multiples and applied the median values from
the percentile analysis for our valuation calculation.
| Annual Value | Multiple | Weighting | Implied Valuation | |
|---|---|---|---|---|
| SDE | $617,000 | 3.01 | 50% | $928,585 |
| EBITDA | $432,000 | 4.31 | 50% | $930,960 |
| Total Value | $1,859,545 |
The valuation calculation details are shown in the table above. The value
using the Market Approach is $1,859,545.
Valuation Report
12
RIVERSIDE
PLUMBING LLC
Income Approach: Capitalization of Earnings
We also applied an income-based approach to estimate the intrinsic value of
the business. We utilized the EBITDA and applied a capitalization rate that
reflects the company's risk profile and stable growth status.
Cost of Equity
Utilizing cost of capital premium data from BVR, we built up the cost of
equity as the following.
| Cost of Equity - Build up Method | |
| Risk-free Rate of Return (20-year treasury) | 4.50% |
| Equity Risk Premium (Dr. Damodaran) | 7.00% |
| Industry Risk Premium | 1.00% |
| Size Premium (Smallest Bracket) | 7.00% |
| Company Specific Risk Premium | 3.00% |
| Total Cost of Equity | 22.50% |
| Source: Cost of Capital Professional, 2025 (Business Valuation Resources, LLC). Used with permission. | |
Overall WACC is the following:
| Cost of Capital | Capital Structure | WACC | |
|---|---|---|---|
| After-Tax Equity Cost of Capital | 22% | 80% | 18% |
| After-Tax Debt Cost of Capital | 6% | 20% | 1% |
| Subtotal (Discount Rate) | 19% | ||
| Less: Long-Term Growth Rate | -3% | ||
| Cap Rate on Invested Capital | 16% | ||
Valuation Report
14
RIVERSIDE
PLUMBING LLC
Capitalization of Earnings Valuation
Calculation details are the following:
| Normalized Operations | |
|---|---|
| Revenue | $2,480,000 |
| COGS | $1,240,000 |
| Gross Profit | $1,240,000 |
| Gross Margin | 50.0% |
| Operating Expenses | $876,000 |
| Unadjusted EBITDA | $364,000 |
| Owner's Draw addback | $68,000 |
| Adjusted EBITDA | $432,000 |
| EBITDA Margin | 17.4% |
| Less D&A | $44,000 |
| Adjusted EBIT | $388,000 |
| Adjusted EBIT Margin | 15.6% |
| Less Taxes | $62,000 |
| Less Capital Expenditures | $38,000 |
| Plus D&A | $44,000 |
| Normalized Free Cash Flow | $332,000 |
| Discount Rate | 19.0% |
| Long-Term Growth Rate | 3.0% |
| Cap Rate | 16.0% |
| Capitalized Earnings | $2,075,000 |
| Enterprise Value | $2,075,000 |
Valuation Report
15