Valuations and Fairness Opinions

FMI's uniqueness and ultimate credibility in its valuation services are based on its construction industry specialization and extensive experience in buying and selling construction companies through its investment banking services.

  • The expertise needed to appropriately value companies in one industry can significantly differ from the expertise needed to value companies in another industry.
    • Even if an appraisal firm is highly capable from a technical standpoint, it may come up with a value that is too high or too low because it does not have a strong working knowledge of the industry and the acquisition transactions that take place within it. This is often the case within the engineering and construction (E&C) industry, as the appraisal methods commonly used by non-industry-specific appraisers are difficult to apply to E&C firms because of the unique characteristics of businesses in this industry.
  • Having your company valued by a firm with an intimate knowledge of the industry helps to ensure that the value derived is reasonable, fair and defensible for the purpose intended.
  • In the process of performing the valuation, FMI’s appraisers will also offer their advice on ways to enhance the operational and financial aspects of your business based on their experience and expertise in the construction industry.

FMI Capital Advisors, Inc., FMI's investment banking subsidiary, performs formal and informal valuations for each of these purposes.

  • Formal valuations or "Full Appraisals" are long-form reports that are usually required for IRS-related appraisals (gift and estate taxes) or where there is a likelihood that the report will be used in a legal setting (divorces, stockholder disputes, damage cases, etc.).
  • Informal valuations, usually presented in the form of an opinion letter, are prepared for internal planning and all other purposes.


Valuations and Fairness Opinions

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