Business Valuation Mastery with Sheila Darby

Business Valuation Mastery with Sheila Darby

In last week’s Business Brokerage Press webinar “Business Valuation Mastery: Reports, Revenue and Results with Sheila Darby,” attendees were given some excellent and actionable ideas. Sheila Darby has over 25 years of experience in valuation and as a financial analyst. She has in-depth experience with valuations and was kind enough to share her experience during the webinar. Additionally, she was an instructor at the IBBA conference.

During the webinar, Darby covered a wide range of topics pertaining to valuation reports. She discussed the benefits of employing a professional appraiser as well as the top four reports that drive revenue, effective sales strategies for turning valuation reports into profits, and more. Any business broker or M&A advisor looking to learn more about business valuations, while simultaneously gaining expertise to advise their clients, will glean new insights from this talk.

Outsourcing Valuations

One question she addressed is how bringing in others to handle valuation reports can be a key tool in helping business brokers to sell a business. She pointed out that in the process of preparing a report, you can learn a great deal about a business. She explained, “You can get to know the business extremely well without doing the actual valuation work yourself.”

Further, it is her view that it is critical for business brokers and M&A advisors to surround themselves with a top-notch team that includes advisors, such as accountants and attorneys.

The Benefits of Bundling

One key recommendation that Darby has is that you should bundle valuations as part of your services or process. Bundling can be beneficial in many ways. This approach will allow you to attract quality clients who value a well-structured approach.

Additionally, you will stand apart from the competition when you provide a more complete, and therefore, valuable service. Yet another benefit to bundling is that business brokers and M&A advisors can leverage them to justify higher fees due to the fact that they are providing a more comprehensive, detailed, and beneficial approach to their clients.

Including Valuations in Contracts

Darby also recommends providing valuations in contracts with clients. In this way, you can set realistic expectations. All too often, businessowners will have unrealistic ideas as to the regard of their business, or as Darby notes, “Oftentimes you’re going to find yourself in the boat of having to reset expectations. That is a great time to use a certified appraiser.”

Since a certified appraiser is a third party with credentials and a background in appraising, they can provide an independent and unbiased assessment of a business’s worth. Plus, the simple fact that you are potentially seeking to employ a certified appraiser serves to boost your credibility. Finally, this added step will provide you with better insights as well.