Certified Business Valuations for Dallas, TX

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A business valuation is an analysis used to determine the enterprise value of a company, or in some cases a shareholder’s minority or controlling interest in that company. Business owners need to understand the current and future value of their company for a number of reasons. This list is by no means exhaustive, but some of the most common purposes or uses are:

• buy-sell,
• attracting investors,
• recapitalization,
• lending,
• contingency planning,
• value management,
• tax and/or estate planning purposes,
• establishing the value of a partner’s majority or minority ownership interest,
• litigation or even in divorce proceedings.

A business valuation can also identify operational inefficiencies, areas of risk, and ways to create stronger cash flow, all of which can increase the value of an organization. The challenge for small businesses, which do not have publicly traded stock and are not held to those accounting standards, is their financial reporting does not provide an accurate depiction of the actual performance of the company or the economic benefit of ownership. According to the CNBC Small Business Playbook, 98% of small businesses polled by M&T Bank over the past two years didn’t know the value of their companies. This could lead to major repercussions for a company should it face some type of triggering event or, better yet, an opportunity come knocking. A business valuation is useful because it will assess the operating and financial history of the company. It then provides a measure of the company’s worth based an assessment of its history, future projections, market, industry and the adjustment of its reported assets, liabilities, revenues and expenses, so as to reflect reality.

RSI & Associates, Inc., celebrating its 30th year in business in August of this year, has clients across North America and has performed valuations in all 50 states. Our Team has expertise in financial forensic analysis, business appraisal, fairness opinion, collateral and earnings examination, exit strategy consulting, project management, technical writing, litigation support and due diligence research. Our experience is well-known in the Legal, Lending and M&A Industries.

RSI’s certified business valuations are a complete analysis of the business’ fair market value. It includes up to 5-years of historical financial information, as well as comparisons to operating standards, operating norms, and performance ratios within the company’s industry. Our appraisers will analyze the health of the company based on its historical performance, market location and position, operating systems, procedures and controls, and the condition of the industry as well as the economy. In order to prove-up the value determination, a Hypothetical Sale and Post Sale Cash Flow Analysis will be performed based on reasonable terms of a transaction of the appraised value.

RSI is an authorized and preferred vendor with many SBA and USDA guarantee lenders, and our certified business valuations meet all the requirements of the SBA SOP. If you reside in the Dallas or DFW Metroplex and are interested in our business valuation services, or if you would like more information regarding the business valuation process, give us a call at 361.994.8095 or request a proposal at clientservices@RSIvalue.com.