Hi, I’m Chris Walton, author of this guide and CEO of Eton Venture Services.
I’ve spent much of my career working as a corporate transactional lawyer at Gunderson Dettmer, becoming an expert in tax law & venture financing. Since starting Eton, I’ve completed thousands of valuations for companies of all sizes.
Read my full bio here.
In the past 15 years, my team has completed 5,000+ independent company valuations for small businesses, venture-backed startups, high-growth companies, private equity funds, and more.
In this article, we’ll introduce you to our approach to valuations. And we’ll provide six alternative business valuation companies for you to consider hiring.
Skip ahead:
Here are the four factors I’d consider when hiring a business valuation company:
Let’s look at each one in turn:
First things first, make sure the valuation consultant you choose specializes in the exact business valuation type you need.
Some valuators are comfortable doing 409A’s but lack the experience required for Mergers and Acquisitions.
A reputable valuation firm will have a proven history of delivering business valuations that stand up to scrutiny from financial institutions, regulatory bodies, and in legal scenarios.
Look for firms with positive testimonials from past clients and a record of successful engagements.
A business valuation firm should be able to accommodate your timeline, even if that means they need to charge extra to allocate the resources to get it done.
But as standard, even a complex business valuation shouldn’t take more than two weeks.
Costs vary drastically among business valuation consultants.
They also can vary based on the complexity of the valuation and circumstances surrounding the valuation.
For example, a 409A will likely be cheaper than a valuation needed for a merger.
Look for a firm that is within your budget but where you don’t need to compromise on quality or service.
Here are my top 7 recommendations for business valuation companies:
Below I’ll explain the merits and expertise of each. First up is my own firm, Eton VS.
At Eton, we combine the expertise and experience of large firms with the attention to detail and client care of a boutique service provider.
Everything we do is bespoke to our clients’ needs. This makes us the ideal choice for small, medium, and large firms who prefer a more personalized and friendly service.
We give our undivided attention to ensure we complete each valuation in a timely manner while ensuring accuracy.
Types of Business Valuations We Do
We deliver fast, accurate business valuations across a variety of areas, including:
Want to talk through your business valuation needs with me? Get in touch here.
I’ll make sure we’re the right firm for the job or point you in the direction of someone better suited.
Our business valuation process is fast, efficient, and comprehensive. It takes 10 days from the receipt of company documents no matter the type or complexity of the valuation.
Here’s an overview of what that process looks like and your involvement:
Day 1: Information Collection
Once we have all of your documents, we review them to make sure we understand your business inside out.
We’ll request further information if we find anything is missing that we may need to come to an accurate valuation.
Day 2: Valuation Modelling & Analysis
Next, we analyze your cap table, business stage, and more. We’ll start crafting your valuation and determine what methodologies are required to accurately value your business.
Where possible, our CFAs apply multiple methodologies to reach the most accurate result.
Day 3-7: Valuation Prepared
At this stage we’ll apply those methodologies.
Day 8: Draft Report Delivered; Client Review & Return
After we’ve given the valuation an internal review, we’ll send the report to you for review.
At this stage, you’ll need to let us know if you need any changes. We’ll also get on a call where we can answer your questions and address your concerns.
Day 10: Final Valuation Confirmed & Delivered
Finally, we’ll revise the draft and get you to sign-off on the outcome.
Beyond these 10 days, you’ll get ongoing audit support. We’ll happily explain the valuation and answer any questions to anyone you need us to.
We work with business across industries and of all sizes from your local mom-and-pop shop to a scaling startup and established corporations.
Here are some of our recent clients:
And this is the experience they have:
→ You can read more testimonials from our clients here. ←
Excluding 409A valuations, business valuations at Eton start at $5000. They go up based on circumstance, complexity, and turnaround time.
📚Want to know more about business valuation costs at Eton and beyond? Check out our article: Business Valuation Services Cost
It’s hard to give a general answer without knowing your exact needs. We offer custom quotes to every client that is fair and affordable.
To find out what your business valuation would cost with Eton, please get in touch with us below.
If Eton doesn’t feel like a fit, the first recommendation I’d make is for valuationresearch.com, or VRC.
VRC is an independent global valuation firm that has been focusing on valuations and advisory services since 1975.
They operate across multiple locations, including major cities in the U.S.
Their in-house valuation services cover businesses, equity and debt securities, loans, derivative instruments, structured products, intangible assets, fixed assets, and real estate.
My one word of caution is that due to their size and scope, you may not get much attention or the hyper-specialization your valuation requires.
Teknos Associates offers deep industry knowledge in technology, life sciences, blockchain, and other growth sectors. Their services span corporate advisory, tax compliance, financial reporting valuation services, and litigation support.
This is a great option for businesses in the industries specified but they’re not the only option. Make sure they meet other criteria such as cost, turnaround time, and great customer service.
Kroll is recognized for its extensive global reach and comprehensive risk and financial advisory solutions, making it a powerhouse in the industry.
Given Kroll’s size and global footprint, you can expect a wealth of industry experience and a wide range of expert services.
However, those seeking more personalized, high-touch service may find Kroll’s corporate approach less appealing compared to smaller firms focused on individualized client experiences.
Aranca is a global research, analytics, and advisory firm, who extends its expertise to include business valuation services.
Their specialization in serving global clients positions them uniquely for businesses outside of the US, offering advantages such as diverse market insights and global expertise.
US-based businesses might encounter challenges related to time differences and the need for rapid, personalized communication that is critical in business valuations.
Stout is a global advisory firm that specializes in investment banking, accounting, transaction advisory, valuation advisory, and disputes, claims, and investigations.
They cater to both public corporations and privately held companies across various industries.
If you need a more complex and specialized valuation, Stout is a good choice.
It offers the most comprehensive range of valuation services in the industry. This includes:
As a global enterprise, you can be sure they have the resources and expertise. What you might find lacking is their attention to the client and fast standard processes.
Renowned for its expertise in financial advisory services, Houlihan Lokey offers exceptional valuation services across a broad spectrum of industries.
They have over 400 valuation professionals globally and focus on delivering valuations for private and public companies, portfolio companies, intangible assets, and complex financial instruments.
Due to their size and industry experience, their business valuation services may cost more than at a boutique firm like Eton.
| Experience | Time to Completion | Cost | ||
|---|---|---|---|---|
| 1 | Eton | Big 4 trained financial analysts with experience across all business valuation types | Standard business valuations in 10 days or less | Affordable (starting at $5000) |
| 2 | VRC | Over 300 U.S.-based professionals and an international network of nearly 1,500 valuation experts | Moderate timeline | Unknown |
| 3 | Teknos Associate | Experience valuing businesses in information technology, life sciences, alternative energy/cleantech, and blockchain technology/cryptocurrency | Moderate timeline | Unknown |
| 4 | Kroll | Has strong experience in retail and real-estate industry valuations | Slow | Unknown |
| 5 | Aranca | Experience valuing companies from around the world | Slow | Unknown |
| 6 | Stout | Experienced in a wide range of complex and specialized valuation services | Slow | Unknown |
| 7 | Houlihan Lokey | Offers valuation services across many industries, with a team of over 400 professionals worldwide | Slow | Unknown |
Want a business valuation company with expertise you can trust at affordable prices and with first-class customer service? Get in touch with us here.
Have questions about valuation companies? I answer them below:
A company valuation is a critical process that determines the monetary value of a business at a specific point in time.
It provides essential insights for investors, buyers, and sellers, guiding their decisions in various business transactions such as mergers, acquisitions, and investments.
Here are some use cases of a company valuation:
Investment Decision:
Investors use company valuations to decide whether to invest their money in a particular business.
A higher valuation might indicate a promising investment opportunity, while a lower valuation might signal potential risks.
Mergers and Acquisitions:
Valuations play a key role in negotiations during mergers and acquisitions.
Companies use valuation insights to determine a fair price for acquiring or merging with another business.
Selling a Business:
For business owners looking to sell their company, a valuation helps establish an appropriate asking price.
A comprehensive valuation analysis can attract potential buyers and facilitate a smoother sales process.
Strategic Planning:
Companies utilize valuation data to make strategic decisions about growth opportunities, resource allocation, and competitive positioning.
Valuations inform long-term planning initiatives and help businesses chart a course for future success.
A standard business valuation, especially those for small businesses with limited complexity, will cost between $5000 and $10,000.
But in some complex cases, they can cost up to $100,000.
The exact price depends on what valuation method is required, the complexity and size of your business, and the purpose behind the valuation.
No matter your size, there are some instances where your business valuation is more likely to exceed $10,000:
If you’d like a complete breakdown of the cost, please read this article: Business Valuation Services Cost: How Much Is Normal in 2024
The party responsible for paying for a business valuation often depends on the context in which the valuation is being conducted:
Schedule a free consultation meeting to discuss your valuation needs.
Chris co-founded Eton Venture Services in 2010 to provide mission-critical valuations to venture-based companies. He works closely with each client’s leadership team, board of directors, internal / external counsel, and independent auditor to develop detailed financial models and create accurate, audit-proof valuations.
