Why Do You Need a
Broker Opinion of Value?
A Broker Opinion of Value counts on the professional verdict of the expert who weighs the type of business, its financial performance, the value of assets and related liabilities. Ultimately, we will arrive at an estimate of the value of the business.
There are many reasons why you may need a business valuation:
- To determine a defendable sales price for the company;
- To develop a technique to improve the profitability;
- For a transfer of ownership, buyout of founders, management or partners;
- To negotiate a strategic merger & acquisition;
- For business exit planning;
- To find out whether the company is growing, stagnant or declining in terms of revenue generation and earning profits.
Create A Defendable Sales Price for a Successful Outcome
DBG Advisors works with business owners in Dallas and throughout Texas to establish a Most Probable Sales Price. This is a Broker Opinion of Value that is defendable in negotiating with buyers in the sale of your company. We are prepared to use our years of experience and knowledge of the industry-specific issues and trends to establish a dependable sales price at the outset of the engagement.
A high-quality business valuation requires experience, valuation tools, and a solid understanding of the market. Finally, our Most Probable Sales Price is benchmarked against industry specific data that supports our findings.
DBG Advisors uses three approaches in the process of providing a business appraisal:
- Multiple of Earnings Approach
- Market Multiples Approach
- Buyer Test Approach
These three values are presented in our price evaluation report and provide a clear path to discovering company valuation. The Most Probable Sales Price provides a range of value the business owner can expect from a qualified buyer.
Our Process
As your advisor, we will attempt to predict the future benefits that would be available to an imaginary investor at a given point of time. We will need some crucial information from the business owner that will help us in our process.
- The last 3 years of the company’s P&L and Balance Sheets plus the company’s interim P&L and Balance Sheets (current year).
- The last 3 years of the company’s Tax Returns.
- A list of the company’s intangible assets such as intellectual property.
- The last 3 years of One Owner’s Compensation (what one owner actually puts in his pocket from the company each year – salary, annuity, health insurance, life insurance, company car payments and other perks in order to establish Seller’s Discretionary Earnings).
We make use of industry resources to scale the respective company’s overall performance. We consider current economic conditions and outlook to find if our forecasts are reasonable. Our reports are easy to understand and we can meet in person or virtually to discuss the results.
At DBG Advisors, we will explain the methodology we use in appraising your business. We take the time to explain how we came to our conclusion, addressing all your questions and concerns. Our goal is simple – creation of a defendable sales price that will lead to a lucrative exit and a secure future for you and your family.
Why Choose DBG Advisors for your Opinion of Value?
We are seasoned advisors with years of experience in conducting business transactions in the Dallas/ Fort Worth market. We have knowledge of your industry, market, and your line of business. When we are helping to develop a defendable sales price, we will consider both financial and non-financial factors in the process. Whatever your reason is for needing to know how much your company is worth, we can help because we are experienced in conducting valuations.
