Valuing the Business.
Once the initial investigation and evaluation have been completed, the buyer must arrive at a fair value for the firm. Valuing a business is not easy or exact, even in the best of circumstances. Despite the fact that buyers prefer audited financial statements, many firms operate without them. In valuing such firms, the buyer will have to rely on federal tax returns and state tax statements. It may also be helpful to scrutinize invoices and receipts of both customers and suppliers as well as the firm's bank statements.