Subject Business Name: Sample

The Purpose

The Scope

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The Methodology

Business Valuation Report Sample

The scope of the valuation was limited to the data submitted by the business' representative and the representative's rating of the subject business on the seven Business Risk Categories shown on page 4. All information presented in this report is the responsibility of the client. The information has not been audited or independently verified.

The purpose of this report is to estimate the Fair Market Value of Subject Business. The term "fair market value" is generally defined as the price which property will bring when it is offered for sale by one who is willing, but not obligated to sell, and is bought by one who is willing or desires to purchase, but is not compelled to do so.

Biz-Investor uses a proprietary valuation process to calculate a business’ value. Please refer to the Disclaimer on Page 5 for more information.

Sample is 20,000$

Estimated Value 20,000$

Estimated Value Range

Low Value: 10,000$

Estimated Value: 20,000$

High Value: 30,000$

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This report was prepared by Biz-Investor see disclaimer on page 5.

The estimated value of

$10,000

$20,000

$30,000

$- $5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1

Est

imate

d V

alu

e R

an

ge

(in thousands)

High Value:

Estimated Value:

Low Value:

$20,000

$- $5,000 $10,000 $15,000 $20,000 $25,000

Estimated Value

Financial Data for Sample (in thousands)

This report was prepared by Biz-Investor see disclaimer on page 5.

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Summary Income Statement (in thousands)

Fiscal Year Ending 2003 2004

Gross Sales/Revenue -$ -$

Total Costs and Expenses -$ -$

Net Profit -$ -$

Calculation of Discretionary Cash Flow (in thousands)

Net Profit -$ -$

Plus:Depreciation -$ -$

Amortization -$ -$

Interest Expense -$ -$

Owner's Salary -$ -$

Owner's Discretionary Expenses -$ -$

Non-Recurring Expenses -$ -$

Less:Owner's Replacement Salary -$ -$

Non-Recurring Income -$ -$

Total Discretionary Cash Flow -$ -$

Calculation Of Value :

Estimated Value of Equity -$

Plus: Inventory -$

Real Estate Owned -$

Less: Liabilities -$

Calculated Value -$

Risk Assessment for Sample

This company's average risk rating is: 2.6

At this risk level, the company is typically characterized by: ABCDE

This report was prepared using Biz-Investor see disclaimer on page 5.

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Risk Category Assigned Rating

CUSTOMER LOYALTY 4.4

CUSTOMER MAKEUP 2.0

VENDOR MAKEUP 2.0

BUSINESS APPEAL 2.0

BUSINESS MANAGEMENT 2.6

EQUIPMENT INVESTMENT 2.4

INDUSTRY TRENDS 2.0

The RISK ASSESSMENT is a device used to assist in the valuation of a business. The assessment is designed to determine the Company's Risk Level based on inside and outside factors. The preparer, using the Risk Assessment, rates the business entity being valued on ten business factors. Each business factor is assigned a value from 1 to 5 depending upon the business' individual circumstances. In general, lower responses (0, 1 or 2) tend to identify items that will negatively impact a business' value. Higher responses (3, 4 or 5) identify items that will positively impact a business' value. Each business factor is weighted equally as to its impact on the overall value of the business entity to determine the average shown.

DISCLAIMER FIELD. The objective of this Valuation Report is to estimate the Fair Market Value of the entity named above. To accomplish this objective, financial data and other subjective estimates were collected from the client. Multiple valuation techniques were applied to the data to determine a possible range of values for the entity. Then a specific value within the possible range was estimated based upon a Risk Assessment performed by the user/client.

Risk Monitor

0.0

1.0

2.0

3.0

4.0

5.0

CUSTOMERLOYALTY

CUSTOMERMAKEUP

VENDORMAKEUP

BUSINESSAPPEAL

BUSINESSMANAGEMENT

EQUIPMENTINVESTMENT

INDUSTRYTRENDS

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VALUATION METHODS There are numerous methods that can be used to determine the value of an entity, but there is no single widely accepted method. Most methods can be placed into one of three basic approaches: Cost or Asset Based, Income Based, or Market Based. This report was prepared using a combination of methods but excludes the market based approach. Cost or Asset based approaches value a business based upon the cost to replace the assets of the business. Income based approaches value a business based upon the business' ability to generate positive cash flows into the future. Market based approaches value a business based upon financial ratios and

If checked, this report was prepared on a new business with less than two years of financial data. The value of a new business can vary significantly from a similar established business. If checked, this report was prepared using projected or estimated sales and income information. The Entity's actual results may differ materially, thus impacting the calculated valuation.

DISCLAIMER FIELD. The objective of this Valuation Report is to estimate the Fair Market Value of the entity named above. To accomplish this objective, financial data and other subjective estimates were collected from the client. Multiple valuation techniques were applied to the data to determine a possible range of values for the entity. Then a specific value within the possible range was estimated based upon a Risk Assessment performed by the user/client.

The value calculated is only an estimate. The actual amount that the business would sell for in an open market transaction may be considerably higher or lower and depends upon many factors not considered in this report. Do not enter into any business transaction solely based upon information contained in this report. Consult with your business and financial advisors. Biz-Investor and Perini Enterprises are not responsible for any loss, actual or implied, as a result of your reliance on this report. All information presented in this report is that of the preparer. There has been no review by Biz-Investor, Perini enterprises, or any third party professional in the field of business valuations. The reader of this report should take that into consideration. Verify the Authenticity # 00.00.00. Each page of this report contains an AUTHENTICITY number. The reader should verify that the print sequence number on each page of the report matches. If the print sequence number has been altered or is different on one or more pages, then the report is VOID and UNUSABLE.