Ameriwest Business Valuation page two

Ameriwest Business Consultants, Inc.
Second Business Valuation Sample Page

BUSINESS VALUATION CONCLUSIONS
In our evaluation of TYPICAL BUILDING SUPPLY we have calculated and analyzed a variety of approaches to valuation. The following is a listing of the specific approaches we considered appropriate for this assignment.

Book Value ...............................................................-($417,482)
Adjusted Book Value ................................................$1,118,794
Liquidation Value......................................................$1,118,794
***Capitalization of Earnings............................. $1,345,719 ***
Capitalization of Excess Earnings .............................$1,118,794
Discounted Earnings - Income Residual ....................$1,430,373
Discounted Earnings - Asset Residual .......................$1,228,436
Private Multiples of Value:
Price to Earnings Ratio .............................................$1,178,426
Percent of Gross Revenues .......................................$1,369,206
Rule of Thumb Approach ..........................................$1,565,072

(*** = the method we considered most appropriate for this valuation.)

A case could be made for using any of the above methods. However, based upon our review and analysis we have selected Capitalization of Earnings Method as the best representation of the value for the entire business. Our decision to use this method of valuation can be reinforced by reviewing the "Approaches to Valuation—Decision Tree" that follows on the next page. Therefore, our conclusion of Fair Value for 100.00% of the equity of TYPICAL BUILDING SUPPLY at May 30, 1997 is

$1,345,719

CERTIFICATION OF APPRAISER:
I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, unbiased professional analysis, opinion and conclusion.

I have no present or prospective interest in the property that is the subject of this report, and have no personal interest or bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of this report.

____________________________________
Appraiser

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