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?
WE USE ALL THREE VALUATION METHODS IN OUR SUMMARY VALUATION REPORTS
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)
