Most Probable Sales Price
A Defendable Sales Price Leads to A Successful Outcome
DBG Advisors works with business owners to establish a Most Probable Sales Price as a part of the M&A Advisory and Business Brokerage service. We provide a Broker Opinion of Value which is a qualified opinion about the price range that a specific business could expect to sell for. 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.
We believe high-quality Broker Opinion of Value is the outcome of years of experience and the use of valuation tools that provide industry specific data that supports our findings. With experience in a wide range of industries, we have insight, knowledge, and skills to provide our clients with the information they need to set their sales price.
DBG Advisors uses three approaches in the process of providing a defendable sales price for our clients. They are the Multiple of Earnings Approach, the Market Multiples Approach, and the Buyer Test Approach. These three values are presented in our Price Evaluation Summary and provide a clear path to discover the Most Probable Sales Price that provides the range of value the business owner can expect from a qualified buyer.
Our advisors believe determining the true sales price for your business is significant as it will help give you an opportunity to know where you stand in the market and a clearly defendable sales price.
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 plus any other important information used to come at an estimate of the value of the business.
There are many reasons why you may need a Broker Opinion of Value. Here are a few of them:
- To determine a defendable sales price for the company.
- To develop a technique to improve the profitability.
- To negotiate a strategic sale of a business.
- For exit strategy planning processes.
- To find out whether the company is growing, stagnant or declining in terms of revenue generation and earning profits.
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 and goodwill.
- 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 situations and outlook to find if our forecasts are reasonable or not. We also pull information of other companies that are working in the same industry as yours. We gather all the relevant information and then generate a valuation report based on our findings. Our reports are easy to understand. If you are unable to understand the report, we will explain what is contained in the report.
At DBG Advisors, we will explain the methodology we use in putting together your Broker’s Opinion of Value. We take the time to explain how we came to our conclusion, addressing all your questions and concerns. Our goal is simple – creation of an 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.
Call us at 972-441-4581 to learn more about our services or to discuss your corporate valuation needs.
Do You Know What Your Company is Worth?
Contact DBG Advisors today! Get full value for your company.