Broker Opinion of Value
We begin by recasting your financials to normalize the Income Statement line by line in seven steps:
- We collect 3-5 years of Income Statements
- We adjust to reflect the true earning power of the business
- We adjust to exclude any non-recurring items
- We adjust to include expenses not already included
- We adjust to reflect any imminent changes
- We adjust to remove any non-operating income or expenses
- We adjust for income taxes
If recasting, we calculate the Global Debt Service Coverage Ratio to determine if the business will provide a buyer a suitable salary, ROI, and cover the debt service on the loan. Proforma projections are created to determine the future earning opportunities of the business, and we run an industry analysis to understand the business and industry trends, and a S.W.O.T. and Value Drivers Analysis to determine how your business measures up to industry standards.
We use a variety of valuation methods to determine the Most Probable Selling Price.