What's Your Endgame? Transitioning Business Owners from Business to Eternity
What's Your Endgame? Transitioning Business Owners from Business to Eternity
Exit Planning| Value Acceleration | Advisory| Valuations | Commercial & Residential Real Estate

Broker Opinion of Value vs. Certified Business Valuation 

Knowing what your business is worth can help make educated decisions on exit strategies, loans, insurance needs and more.  

There are different types of valuations available, depending on whether it is for a specific legal need 

or if selling and need an estimate of value for listing the business. 

Valuations Require an Extensive List of 

Financial & Legal Documents to be Reviewed

Find the list >> HERE

Upload them to your secure VAULT ROOM

Broker Opinion of Value BOV (non-certified valuation)

A Broker Opinion of value, BOV,  is a estimation of business value, similar to how a Realtor provides a comparative market analysis to a homeowner.  It is for the purpose of marketing the business and brokering a transaction to get it sold. 

In addition, owners want an annual estimate of value to show trend lines to buyers. 

Business Broker/Intermediary Valuator

Certified Business Valuation

Court case?  Dissolving a business through court (divorce, probate)?  Exiting and have divided interests for each partner? Need an SBA loan?


Income Approach

Consists of the Direct Capitalization of Earnings Method, used when earnings are projected to remain at a constant growth rate, or the Discounted Cash Flow Method, used when earnings are projected to fluctuate before stabilizing. The appraiser uses his judgment based on historical financials, among other attributes.

Market Approach

Consists of the Direct Data Market Method which derives multiples as a factor of sales and earnings streams from historical transactions of similar businesses. The valuation considers historical and current financial performance and assumes that the subject business will be sold on a debt-free basis.

Asset Approach

Also commonly known as the “cost approach” or the “replacement-cost approach.” Each asset of the business is valued separately (typically excludes intangibles) and the total of the liabilities is subtracted to derive the total value of the enterprise.

Certified Business Valuator (CVA)