The valuation analysis can be a very useful tool for management of a closely held company. This process typically involves comparisons of the subject company with a number of comparable companies, giving management an opportunity to assess its performance relative to that of its peers. The valuation process also generates an estimate of the subject company’s cost of capital, which can be useful in assessing the attractiveness of capital projects. Generally, the process involves a careful analysis and projection of sales, expenses, taxes and capital needs and therefore provides a framework which is also useful as a management tool. Finally, some of our client companies have used our appraisals as shareholder communications tools, to keep a private ownership group informed on corporate progress and market value.