Dallas–Fort Worth · Valuation
Where can I obtain a credible business appraisal in Dallas before selling my company?
What makes a business appraisal credible, the methods behind it, how it differs from a sale price, and where Dallas owners can get one.
By Michael D. Rubin, CEO & Founder · September 2026 · 814 words
A credible appraisal comes from an independent, qualified valuation professional who uses recognized methods, documents every assumption and reconciles the results; in Dallas, MDR & Associates offers formal third-party valuation as a separate service, alongside a free opinion of value for owners preparing to sell. Credibility is the whole point.
An appraisal is only useful if a buyer, lender, partner or court can follow its reasoning and accept it. Here is what to look for, and when a sale actually calls for one.
What makes an appraisal credible
If a report cannot answer these points, it will not carry much weight with the people you need it to persuade, whether that is a partner, a lender or a buyer's accountant.
- Independence. The appraiser has no stake in the outcome, and its fee does not depend on the number.
- Qualifications. Ask what valuation training and professional credential the appraiser holds, and how many companies of your industry and size it has valued.
- Recognized methods. A credible report uses more than one approach and explains why it weights them as it does.
- Normalized earnings. Profit is adjusted for owner perks, one-time costs and non-market salaries, and each adjustment is supported by records.
- A stated standard of value. The report says what kind of value it measures, such as fair market value, and as of what date.
- Documentation. Sources, comparable transactions and assumptions are listed so a reader can check them.
The three standard approaches
Goodwill is the value of a business above its tangible assets: its reputation, customers, workforce and systems. For most profitable companies of the size MDR & Associates sells, goodwill is a large part of what a buyer pays for, which is why earnings-based approaches usually carry the most weight.
| Approach | What it does | Where it can mislead |
|---|---|---|
| Income approach | Values the company on its expected future cash flow, discounted for risk | Small changes in growth or risk assumptions move the result a lot |
| Market approach | Compares the company to sales of similar private companies or to public companies | Truly comparable private sales are hard to find, and details are thin |
| Asset approach | Adds up the value of assets less liabilities | Tends to understate a profitable company whose value lies in earnings and goodwill |
An appraisal is not a sale price
A formal appraisal usually estimates fair market value: the price a hypothetical willing buyer and willing seller would agree on, both informed and neither forced to act. A real sale is different. Real buyers bring their own plans, savings and financing, and when several compete, the price can exceed a hypothetical figure. Structure matters as well. Cash at closing, a seller note or an earnout (part of the price paid only if targets are met) change what you keep.
That is why owners preparing to sell often start with an opinion of value from an M&A advisor, which reflects current buyer demand, and order a formal appraisal only when they need an independent report. Sale value is most often three to seven times adjusted EBITDA for a business in the $3 million to $100 million revenue range, where adjusted EBITDA means earnings before interest, taxes, depreciation and amortization after owner adjustments.
When you need the formal version
A credible written appraisal is worth its cost when an independent number has to stand up to someone else's scrutiny: a partner buyout, a sale to family or managers, gift or estate planning handled by your CPA and estate attorney, a lender requirement, or a dispute. Your CPA or attorney can tell you which standard of value and which kind of report your situation calls for, since the right choice depends on who will rely on it.
If a sale is your only goal, you may not need a formal appraisal at all. The buyers' competing offers test the value directly, and an advisor's opinion of value is usually enough to decide whether to go to market.
Questions to ask an appraiser
Ask which approaches it will use and why. Ask for a sample report with client details removed. Ask how it treats owner adjustments and what documents it needs from you. Ask whether it has valued companies in your industry and size range, and what the fee and timeline will be. Ask who the report is written for, because a report prepared for one purpose may not suit another. For how buyers themselves think about value, see what is my business worth.
Getting a valuation through MDR & Associates
We offer formal third-party business valuation as an optional service with its own price, separate from our sale fee. For owners considering a sale, we also give a free, confidential opinion of value, a low-to-high range after reviewing three years of financials. We serve Dallas and all of Texas from Frisco. Start with the free valuation snapshot or reach us through our Dallas contact page.
Where this fitsDallas business brokers and M&A advisors →