Documents for Business Valuation

Documents and records required for business valuation include:

• Business registration certificate
• Tax registration certificate
• Decisions on the establishment of dependent units, such as branches (if any)
• Minutes of capital contribution and joint ventures, and of capital contribution to establish the company
• Financial data
• Balance sheet

             - Income statement
             - Cash flow statement
             - Trial balance
             - Notes to the financial statements

Note: the above financial statements are required for the 3 years (manufacturing enterprises) or 5 years (service enterprises) immediately preceding the valuation, and as at the valuation date (audited, or covered by a completed tax finalisation)

Detailed schedules of accounts

• Cash: cash count sheet
• Bank deposits: list of bank deposits and bank balance confirmations.
• Short-term and long-term investments
• Short-term and long-term deposits and collateral
• Inventories, and information on the inventory accounting method
• List of tools and supplies
• Short-term and long-term prepaid expenses
• Short-term and long-term deposits and collateral
• Receivables
• Payables
• Short-term and long-term borrowings
• Details of construction in progress
• Irrecoverable receivables
• Payables that cannot be settled (with details and clear explanations)
• List of unused assets awaiting disposal
• Inventory count of the company’s assets, clearly classifying leased or borrowed assets (specifying operating or finance leases) and assets received as capital contributions under joint venture or association arrangements.

• Documents relating to business operations

• History of the company’s establishment and development
• List of major customers and suppliers
• Copyrights, trademarks, goodwill, franchises, certificates, etc., and other intangible assets held by the company
• Insurance contracts (personal insurance, property insurance, credit insurance, etc.)
• List of locations where the company has branches, factories or representative offices (if any)
• Detailed production and business plan of the company for the next 3 to 5 years (e.g. production volume plans, unit costs and the related costs used to calculate the unit cost of each product, etc.)
• Investment plans, such as building a new factory (providing the construction project, additional investment in machinery and equipment, etc.), market expansion projects (specifying the target markets, detailed expansion plans, implementation schedule, etc.) and other investment plans (if any)
• Marketing, advertising and brand promotion expenses since the related programmes were launched.

• Human resources documents

• Summary of the company’s key personnel: age, position, qualifications and previous experience
• Number, qualifications and capabilities of employees by functional group, such as production, sales, R&D, accounting, customer service, etc.