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Guide

Preparing for a business valuation: give the analyst clean inputs.

Owners need a valuation for many reasons: a planned sale, a partner leaving, an estate or gift plan, a buy-sell agreement that sets a price formula, an SBA loan for an acquisition, or, for venture-backed companies, a 409A valuation before granting stock options. The purpose matters, because it shapes the standard of value and the method the analyst uses.

Whatever the reason, the analyst's first request is a long list of documents. This guide explains what is usually on that list and how to share it efficiently. It is general information only; your valuation professional, CPA and attorney will advise on your situation.

What a valuation analyst usually asks for

Financial history

  • Three to five years of financial statements, whether audited, reviewed or compiled.
  • Business tax returns for the same years, and a current year-to-date set of accounts.
  • Monthly revenue and gross margin, so the analyst can see seasonality and trend.
  • Budgets and forecasts, with the assumptions behind them.

Earnings adjustments

  • Owner compensation and benefits, compared with what a hired manager would cost.
  • One-time or unusual items such as a lawsuit settlement, a relocation or a large insurance recovery.
  • Related-party arrangements, for example rent paid to an owner who holds the building.

The business itself

  • Customer concentration, contracts and renewal history.
  • Key supplier agreements, leases and loan documents.
  • A list of fixed assets, and any recent equipment appraisals.
  • Ownership documents, prior valuations and any offers received.

Why normalized earnings take the most work

Most small and mid-sized business valuations lean heavily on earnings, and reported earnings rarely tell the whole story. An owner may run personal expenses through the business, pay themselves well above or below market, or carry a one-off cost that will not recur. The analyst adjusts for these to estimate what the business earns for a new owner. Each adjustment needs evidence, so expect questions.

Answering those questions inside the room keeps each answer beside the document it relates to. Questions can be assigned to the right person, categorized and prioritized, and owners can ask for an AI-drafted answer to review before posting. If you hand the analyst a corrected schedule, upload it as a new version so the earlier figures remain in the history.

Setting up a valuation room

  1. 1

    Load the analyst's list

    Turn the request list into a checklist, assign each item to your bookkeeper, CPA or office manager, and track it.

  2. 2

    Upload what you have

    Drag existing folders in with their structure. ShareAndGo reads documents, including scans, and its search finds words inside them.

  3. 3

    Invite the analyst

    The analyst confirms their email with a six-digit code. No account or password is needed.

  4. 4

    Close when the report is issued

    Give the invitation an end date, and keep the room as a record of what the valuation relied on.

Keeping the numbers private

A valuation file is a complete map of the business. If it is being prepared for a sale or a dispute, the fewer copies that exist, the better. Make sensitive folders view-only: the analyst reads watermarked pages with their name, email address and the date, and the original file is never sent to their browser.

Every view and download is recorded in an audit log chained so alterations are detectable, and exportable as CSV. When the work is done, you can export the room as a ZIP with an index of every document, which is useful if anyone later asks what the valuation was based on.

Questions

Do we need a valuation before selling?
Many owners get one to set expectations, and some deals require one for financing. Ask your advisor whether it makes sense for you.
Can the analyst download spreadsheets?
Yes, if you allow downloads for that group. Many analysts need to work in the spreadsheets directly.
Can several advisors share the same room?
Yes. Put each in its own group so each sees only what it needs.

Related guides

Preparing a stock sale

What happens after the valuation, if you sell.

Business succession

Valuations at the heart of a handover.

A business loan application

Lenders ask for many of the same documents.

All guides

Every business process we cover.