Documents Required for a Business Valuation

A business valuation requires a combination of financial data, operational insight, and supporting documentation. The specific information requested will vary depending on the purpose of the valuation, the industry, and the complexity of the business.

At Gato Consulting, each engagement begins with a tailored information request designed specifically for the company being valued. While every request is customized, the categories below provide a practical overview of the types of information typically required.

👉 Gato Consulting provides a secure electronic folder for each project for the client to upload information.

1-Critical Path Items (Required to Begin Work)

Certain items are essential to initiate substantive valuation work. These “critical path” items are generally consistent across most engagements.

Core Items Typically Requested:

Organizational documents (Articles of Incorporation/Organization, Bylaws/Operating Agreement, etc.)
Tax returns for the past 5 years
Financial statements for the past 5 years
Interim financials (if the valuation date falls within a fiscal year, we will need Financials for the past twelve months)
Ownership and capitalization structure
Management future expectations

Companies with Good Financial information save money in their valuations done by Gato Consulting. Check our Pricing page for how. The fact is, good organized financial information saves us time and we return that to the client.

Additional Context Requested (Selected Examples):

Depending on the nature of the company, we may also request:

Prior transactions or offers involving the business
Funding history (debt, equity, SAFE, etc.)
Exit strategy considerations

Note: Certain items (such as real estate–specific questions, or pre-revenue questions for startus) apply only to particular types of businesses and are included as needed.

2-Products, Services, and Market Environment Questions

A valuation must reflect how the company generates revenue and competes in its market.

Typical areas of focus include:

Description of products and services
Revenue composition and margin characteristics
Growth trends and expected changes in product mix
Intellectual property (if applicable)
Sales and marketing approach
Customer concentration
Management’s view of:
- industry conditions
- competition
- regulatory environment

3-Financial & Ownership Considerations Questions

Financial analysis goes beyond reported numbers to understand underlying economic reality.

Key areas include:

Accounting policies (e.g., inventory, revenue recognition)
Quality of receivables and working capital risks
Identification of non-recurring or non-operating items
Non-operating assets or liabilities
Related-party arrangements (e.g., leasing property from an owner)
Debt structure and obligations
Distribution policies

Why This Information Matters

A business valuation is not based solely on financial statements. It requires:

normalization of earnings
assessment of risk
evaluation of future expectations
understanding of how the business actually operates

Incomplete or inaccurate information can materially affect valuation conclusions.

Clients who provide information quickly save money. While the Critical Path Information allows us to start working, we cannot finish our work until we get all the requested information. So we give a discount when that happens soon after the Critical Path. Check our Pricing page for how.

A Tailored Information Request

While the categories above provide a general framework, each valuation engagement is unique.

The information request is customized based on:

preliminary information available (either publi or provided by the company)
business model
company size and complexity
purpose of the valuation
industry

This ensures that the analysis is both efficient and appropriately scoped.

A Rigorous, Defensible Valuation Process

A defensible valuation requires a structured and disciplined approach. Each engagement follows a consistent process designed to ensure accuracy, transparency, and reliability. The gathering of information is the first Step in this process.

1. Information Request & Secure Data Intake

We begin with a secure, confidential portal to collect your historical financial and operational data, as requested in a comprehensive Information Request.

2. Site Visit and Business Review

A deep-dive review of the business operations to understand the reality behind the numbers

3. Financial, Economic, and Industry Analysis

We analyze your firm’s economic conditions and against specific industry benchmarks.

4. Application of Valuation Approaches (Market, Income, Asset) and Discounts

We apply the valuation approaches—Market, Income, and Asset—and calculate appropriate discounts (DLOC/DLOM).

Gato Consulting follows the Professional, Development, and Reporting Standards of the National Association of Certified Valuators and Analysts (NACVA).

5. Independent Peer Review

Our second-eye review by a third-party qualified valuator ensures the logic is sound, and the math is accurate.—

6. Draft Review with Client

We review the preliminary findings with you to ensure all facts are represented accurately.

7. Final Written Report Tailored to Your Audience and Needs

A final, certified report delivered to withstand the scrutiny of your audience—whether the IRS, a lender, or a court.

In Litigation Engagements, we provide adequate support to attorneys and clients throughout the process.

Final Perspective

Providing complete and timely information helps ensure an efficient process and a well-supported valuation.

If you are considering a valuation, we can discuss what information would be required for your specific situation and tailor the request accordingly.

Gathering Information is the first step of a business valuation. We take it very seriously as a part of the robustness we offer the clients that place our trust in Gato Consulting.