Annual Business Appraisal for Government Contractors
Ensure Contracting Success with an AnnualBusiness Appraisal
Customized Appraisals to Strengthen Your Bids and Prove Financial Stability
Get a Certificate of Financial Stability (COFS) with every annual appraisal to show contracting officers that your business is trustworthy and financially strong.
Why Annual Business Appraisals Matter for Government Contractors
Obtaining an annual business appraisal, complete with a Certificate of Financial Stability, is crucial for certified small businesses and offers several key benefits:
Prove Financial Stability
Demonstrating your business’s financial health is vital to increasing your chances of winning federal contracts. The Certificate of Financial Stability reassures agencies of your ability to manage financial commitments.
Enhance Credibility with Agencies
Establishes your business as a reliable partner for government projects by proving you have both the resources and financial stability to meet contract demands.
Improve Access to Financing
A business appraisal prepared by a certified business appraiser helps secure better loan terms for working capital and growth, and the certificate provides additional assurance to lenders of your creditworthiness.
Plan for Growth
Provides a roadmap for optimizing bids and scaling operations, with the confidence that your business can handle increased government contracting opportunities.
Gain a Competitive Advantage
Showcase your financial stability in contract bids, giving you an edge over competitors and positioning your business as a qualified, dependable choice.
Strengthen Access to Loans
Demonstrating your financial responsibility to lenders reduces their perceived risk, expediting loan approval processes and investment opportunities.
Reduce Risk
Display your ability to consistently meet financial obligations, fostering stronger trust and favorable terms with suppliers, stakeholders, and clients, while enhancing long-term relationships.
Comparable Private Transactions Method
This method compares your business to recently sold companies within the same industry. It is especially helpful for contractors because it provides a market-based valuation that can be used to justify pricing and financial health when bidding on government contracts.
Capitalization of Earnings Method
By dividing your business’s earnings by a capitalization rate, we establish a value based on current earnings. This is particularly important for contractors with steady income streams, showing federal agencies that your business is financially stable and capable of delivering long-term projects.
Multi-Stage Growth Method
We adjust your financial statements to account for non-operational expenses, resulting in a more accurate and reliable estate valuation. This step ensures that your business’s true performance is reflected in the valuation process.
Discounted Cash Flow (DCF) Method
DCF estimates your future cash flows and discounts them to present value, accounting for risk. It helps contractors demonstrate the long-term sustainability of their business, providing agencies with confidence in your financial stability for large-scale or long-term contracts.
Adjusted Net Asset Value Method
This method adjusts the book value of your assets and liabilities to reflect current market conditions, offering a clear picture of your company’s worth. For contractors, this can be crucial in justifying bids, especially when significant assets are involved in fulfilling contracts.
Accurate Annual Appraisals for Government Contractors in 3 Easy Steps
Achieving a precise and reliable annual business appraisal is essential for government contractors. Here’s how we streamline the process:
Step 1: Data Collection
Your certified appraiser will assist in gathering key financial documents such as profit and loss statements, balance sheets, and tax filings, specific to the needs of government contractors. This includes reviewing past expenses for one-time or non-recurring costs that can be considered as addbacks, like discretionary expenses or personal items. This step ensures we capture a true picture of your business’s financial health.
Step 2: Normalization and Adjustment
We adjust your financial statements to reflect non-operational or non-recurring expenses that may obscure your business’s true performance. These adjustments are critical for government contractors, as they highlight your core profitability and capacity to meet contract requirements. These adjustments are made using our proprietary valuation model, ensuring clarity without altering your original financial statements.
Step 2: Normalization and Adjustment
We adjust your financial statements to reflect non-operational or non-recurring expenses that may obscure your business’s true performance. These adjustments are critical for government contractors, as they highlight your core profitability and capacity to meet contract requirements. These adjustments are made using our proprietary valuation model, ensuring clarity without altering your original financial statements.
Step 3: Benchmarking and Valuation
We compare your business to industry competitors and produce a detailed appraisal, alongside the Certificate of Financial Stability, giving agencies the confidence that your business has the resources to execute contracts successfully.
Growing Businesses (>$400,000 Revenue)
Standard Annual Business Appraisal Report
Are you a growing business with over $400,000 in annual revenue looking to secure more federal contracts? Our Standard Annual Business Appraisal Report and Certificate of Financial Stability are designed to demonstrate your financial stability, making your bids more competitive and improving your chances of securing government contracts.
This 35+ page comprehensive report includes:
- Certificate of Financial Stability
- Industry benchmarking
- Sales, SDE, & EBITDA multiples
- Income approach & capitalization of earnings method
- Multi-stage growth method
- Valuation summary
Why Choose Our Standard Annual Business Appraisal Report?
Tailored for Businesses with $400,000+ in Revenue
Our report ensures that businesses with significant growth are well-positioned for federal contracting opportunities.
Fast Turnaround (2-5 Days)
We understand that timing is crucial in the fast-paced world of federal contracts. Our quick turnaround ensures you won’t miss key opportunities.
Prepared by NACVA Certified Appraisers
Trust in the reliability of our certified appraisers who provide detailed, accurate valuations based on your unique business needs.
6 Valuation Methods
By utilizing six different methods, including industry-standard valuation techniques, our report gives you a full, accurate picture of your business’s worth and financial viability, tailored to your revenue level and market position.
Ideal for Contracting Success
A professionally prepared annual appraisal is critical for businesses aiming to win local, state and federal contracts. It demonstrates financial health, which is essential for gaining the trust of contracting officers.
Industry Benchmarking
Compare your business to others in the industry. This feature highlights your competitive advantages, giving you the edge in bidding and negotiating federal contracts.
How This Report Benefits Your Growing Business:
Demonstrates Financial Stability
Larger federal contracts demand a high level of financial stability. This report shows federal agencies that your business is capable of fulfilling those contracts with confidence.
Secures Better Loan Terms
As your business grows, you may need additional capital. Lenders are more likely to provide favorable terms when they see a clear, professionally prepared valuation.
Strengthens Your Contract Bids
A detailed appraisal makes your bids more competitive by showing federal agencies that you have the financial resources to meet the demands of government projects.
Supports Strategic Growth
With clear financial insights, you can make informed decisions about scaling your business, navigating new opportunities, and ensuring long-term success.
Small Businesses (less than $400,000 revenue)
Essentials Annual Business Appraisal Report
For government contractors with under $400,000 in annual revenue, the Essentials Annual Business Appraisal provides critical financial insights to demonstrate your stability and credibility to local, state, and federal agencies.
This 18+ page report, prepared by a certified appraiser, includes:
- Certificate of Financial Stability
- Valuation summary
- Sales & SDE multiples
- Adjusted financials
- Hand-picked business comps
- Expert-selected adjustments
Why Choose Our Essentials Annual Business Appraisal Report?
Tailored for Small Businesses with <$400,000 in Revenue
Designed specifically for small businesses, this report provides essential insights to help secure government contracts.
Fast Turnaround (1-6 Days)
Our quick service ensures you’re ready for upcoming contracting opportunities.
Prepared by Certified Appraisers
Trust in detailed, accurate valuations that reflect your business's unique financial needs.
3 Valuation Methods
Focused and practical valuation techniques provide a clear picture of your business’s worth.
Ideal for Federal Contracting
A professionally prepared annual appraisal is critical for businesses aiming to win local, state and federal contracts. It demonstrates financial health, which is essential for gaining the trust of contracting officers.
How This Report Benefits Your Growing Business:
Demonstrates Financial Stability
Small government contracts still require proof of financial health. This report shows agencies that your business can meet their expectations with confidence.
Improves Loan Access
A clear, professionally prepared valuation helps secure better loan terms, ensuring you have the capital to grow.
Enhances Contract Bids
An annual business appraisal strengthens your bids by showcasing your ability to handle government projects.
Supports Business Planning
With reliable financial insights, you can make informed decisions about growth and future opportunities.
Certificate of Financial Stability – BizWorth
BizWorth offers a Certificate of Financial Stability, a comprehensive analysis of your company’s financial health.
This certificate is based on a thorough review of key financial metrics, such as liquidity, solvency, capital access, and financial performance, and is benchmarked against industry peers to assess your competitive position.
While BizWorth is not a CPA firm and does not provide audit or attestation services, this certification provides data-driven insights into the financial stability of your business.
It serves as a trusted document that enhances your credibility with clients, partners, and investors.
Key Benefits of the Certificate of Financial Stability
Demonstrates Financial Health
Provides verified proof of your business’s financial standing, increasing trust among stakeholders.
Facilitates Access to Capital
Simplifies the process of securing loans or investments by demonstrating your low-risk financial profile.
Enhances Credibility
Establishes your business as financially reliable, making it more attractive to potential partners.
Benchmarked Analysis
Offers valuable insights by comparing your financials against industry standards, highlighting strengths and areas of opportunity.
Supports Contract Bids
Gives you a competitive edge in government and private contracts, where financial stability is a crucial requirement.
With BizWorth’s Certificate of Financial Stability, you gain the confidence of your business community while positioning your company for growth and new opportunities.
Proven Expertise Across Diverse Small Business Industries
BizWorth has extensive experience serving a wide range of small businesses with valuations, including:
- Construction and Contracting Businesses
- Professional Services (e.g., Legal, Accounting Firms)
- Technology and IT Service Providers
- Environmental and Engineering Firms
- Healthcare and Medical Services
- Security and Defense Contractors
- Educational and Training Services
- Transportation and Logistics Providers
For a complete list of industries we serve, please visit our Industries Page.
The Key Components of a Business Valuation Report
Understanding the different components of a business valuation report is essential for making informed decisions.
Equity Value
Asset Sale Value
Enterprise Value
Key Performance Indicators (KPIs)
Pricing and How to Prepare
For Pricing: Here’s a simple step-by-step process to obtain pricing for your business:1) Click the green "Get Started" button on this page.
2) Choose Business Valuation from the menu.
3) Select Business Owner
4) Select Annual Business Appraisal.
5) Answer a few quick questions about your business.
That's it! You’ll receive instant pricing for your business.
How to Prepare: To help our appraisal team complete your report efficiently, here’s some information that will be useful to gather along the way. Don’t worry if you don’t have everything upfront—we’ll guide you through the process in the Data Collection Portal:3 Years of Financial Statements (or Tax Returns): You will choose to upload either financial statements (Profit & Loss Statement and Balance Sheet) or tax returns of the business for the last three full years. Tax returns are usually preferred if you are buying or selling a business; however, financial statements are usually preferred for strategic planning purposes. Consult with your advisor, lender, or CPA regarding their preference. If you've been in business for less than 3 years, just provide what you have.
Year-to-Date Financial Statement: You will also be asked to upload a year-to-date financial statement through the valuation date. Be sure the year-to-date financials are through the same valuation date. It is preferred to use a month-end, quarter-end, or year-end date when possible.
A Small Business Valuation Company You Can Trust
At BizWorth, our commitment to providing independent, USPAP-compliant valuations has earned us a reputation for excellence. We proudly serve a diverse range of clients, including business owners, brokers, CPAs, attorneys and lenders.
Let us help you make informed decisions about your business investments with confidence and clarity. Get an online quote today!
Your Small Business Valuation Team
BizWorth is here to help
When it comes to Annual Business Appraisals for Government Contractors, having an accurate business appraisal is essential. BizWorth is here to guide you through the process. Simply click the green "Get Started" button below to complete your annual appraisal.
Get an Instant QuoteAdditional Services
Let us help you achieve a precise and defensible valuation for your business. Get an online quote today!
Frequently asked questions
Still have questions about your annual business appraisal. We have compiled a list of questions other small business owners frequently ask.
A business valuation is the process of determining the economic value of a business or company. For government contractors, it’s especially important because it helps establish your financial stability and credibility with federal, state, and local agencies. Valuations are used not only for sale or merger purposes but also to demonstrate financial health when bidding on government contracts, applying for loans, or qualifying for certifications.
A business valuation is essential for proving the financial stability of your business, which is a key requirement when bidding on government contracts. It shows that your company has the necessary financial resources, creditworthiness, and ability to meet the obligations of the contract. Valuations can also help improve access to financing, secure better loan terms, and enhance your credibility with contracting officers. For more information, check out the "Define the Purpose" section of BizWorth’s Definitive Guide to Business Valuation Reports.
Business valuations for government contractors typically use methods like the income approach, market approach, and asset-based approach. These methods take into account your company’s cash flows, assets, and market position to provide a clear financial picture that federal agencies rely on. For more on how valuations are performed, visit the "Read the Report" section of BizWorth’s Definitive Guide to Business Valuation Reports.
For a business valuation specific to government contracting, you’ll need to provide the past three years of financial statements (income statements, balance sheets, cash flow statements), tax returns, and information on your contracts, assets, market, and competition. A complete list of required documents is available in BizWorth’s Definitive Guide to Business Valuation Reports.
The cost of a business valuation can vary based on your business's complexity and the level of detail needed for government contracting purposes. Typically, valuations for businesses involved in government contracts range from $1,000 to $3,000 for buying and selling purposes and can go up to $7,000 to $10,000 for more complex needs such as financing, legal disputes, or estate planning.
Business valuations for government contracting should be performed by certified professionals with expertise in both valuation and government compliance. Qualified professionals include Certified Valuation Analysts (CVAs), Accredited in Business Valuation (ABV) CPAs, or Accredited Senior Appraisers (ASAs). These credentials ensure the valuation is accurate and meets the stringent requirements of government agencies. Avoid using estimates from unqualified sources, as they can be 15-30% off from the true value and may not meet federal contracting standards.
For government contractors, getting an annual business valuation is crucial. It ensures that you have up-to-date financial data, which is vital when bidding on contracts, securing financing, or responding to agency audits. An annual valuation, accompanied by BizWorth’s Certificate of Financial Stability, can be presented to agencies to prove your business’s financial health and creditworthiness, increasing your chances of winning contracts and negotiating favorable terms.
To increase your business’s value in the government contracting space, focus on improving financial performance, diversifying your contracts, and maintaining strong compliance records. Strategies like increasing revenue, reducing expenses, and ensuring accurate financial reporting will make your business more attractive to contracting officers. Additionally, maintaining a Certificate of Financial Stability from BizWorth can help demonstrate your business’s ability to manage large-scale contracts, increasing your value to federal agencies.
A Certificate of Financial Stability is an official document provided by BizWorth that certifies your business has the financial resources, creditworthiness, and ability to manage its financial obligations. It’s particularly valuable for businesses seeking government contracts, as it proves to local, state, and federal agencies that your company is financially stable and capable of fulfilling the terms of a contract.
A Certificate of Financial Stability is crucial for businesses aiming to secure government contracts. It demonstrates to contracting officers that your business can manage the financial responsibilities of a contract, making your bids more competitive. This certificate can also be used to improve your standing with lenders, suppliers, and potential partners, as it assures them of your financial strength and reliability.
To obtain a Certificate of Financial Stability, your business must undergo a thorough financial review and valuation conducted by BizWorth’s certified appraisers. As part of this process, we analyze your financial statements, credit history, and cash flow to determine whether your business meets the necessary criteria for financial stability. Once the appraisal is complete, the certificate is issued alongside the valuation report.
You’ll need to provide key financial documents such as income statements, balance sheets, cash flow statements, and tax returns from the past three years. Additionally, details about your existing contracts, debt obligations, and financial projections may be required to assess your business’s long-term financial stability.
The Certificate of Financial Stability is typically valid for one year from the date of issue. Since a business’s financial position can change over time, we recommend obtaining a new certificate annually, particularly if you are regularly bidding on government contracts or seeking new financing opportunities.
The certificate enhances your credibility with government agencies by proving that your business has the financial resources to execute contracts successfully. It also improves your chances of securing better loan terms, favorable supplier agreements, and strategic partnerships. Additionally, having this certification allows you to respond quickly and confidently to government contract opportunities, knowing that you meet the financial requirements.
While not always a formal requirement, many government agencies look for proof of financial stability when awarding contracts. Having this certificate from BizWorth gives you a competitive advantage, as it shows that your business has been vetted and certified as financially capable of managing contract obligations.
The cost of obtaining a Certificate of Financial Stability varies depending on the size and complexity of your business. Typically, it is issued in conjunction with an annual business appraisal, and pricing ranges from $1,000 to $10,000 depending on the level of detail required. For businesses focused on government contracting, this is a worthwhile investment to ensure your bids stand out.
Yes, the Certificate of Financial Stability can improve your access to financing. Lenders and investors look favorably on businesses with certified financial stability, as it reduces their risk. This certification can lead to more favorable loan terms, better interest rates, and greater confidence in your ability to meet repayment obligations.
The Certificate of Financial Stability is typically included as part of your proposal package when bidding on government contracts. It can be submitted alongside your financial statements, business valuation, and other required documents to provide agencies with proof of your financial health. This certification reassures contracting officers that your business has the resources to fulfill contract terms.