Bratton, McMorrow & Associates LLP

Engagagement Options

BMA offers a valuation engagement and a calculation engagement.

Valuation Engagement

A valuation engagement calls for an estimate the value of a subject interest where BMA is free to apply the valuation approaches and methods we deem appropriate in the circumstances. We express the results of the valuation as a conclusion of value. In a valuation engagement, BMA applies all the procedures outlined in the Steps for a Business Appraisal.

Calculation Engagement

In a calculation engagement, BMA and the client agree on the valuation approaches and method that BMA will use and the extent of procedures we will perform in the process of calculating the value of a subject interest. These procedures will be more limited than those of a valuation engagement. We express the results of these procedures as a calculated value.

In a calculation engagement, BMA:

  1. Prepares a brief description of the business.
  2. Performs limited financial analyses.
  3. Determines a calculated value using only one valuation approach (income, market or asset approach).

The calculation engagement is less expensive than a valuation engagement. However, it is not appropriate for litigation or if the client plans to submit the report to the IRS.