Valuation and Financial Analysis
Bailes & Co. provides independent business valuations for ownership decisions, divorce and commercial disputes, estate and gift matters, succession planning, transactions, buy-sell agreements, and other situations in which the value of a closely held business must be supported by financial analysis.
The scope of each engagement is defined around the purpose of the valuation, the ownership interest involved, the valuation date, and how the conclusion will be used.
Serving clients and attorneys from offices in Tyler and Dallas, Texas.
Purpose first
A business valuation is an analysis of the value of a company, ownership interest, or specified business asset as of a particular date and for a defined purpose. The appropriate scope depends on why the valuation is needed.
A valuation prepared for a divorce or shareholder dispute may require different assumptions, records, standards, procedures, and reporting than one prepared for estate planning, a potential sale, or internal succession. Before the work begins, Bailes & Co. identifies important engagement terms such as:
When it's needed
A valuation may become central to a range of ownership, tax, and dispute matters. These are the situations in which clients and attorneys most often engage the firm.
When a spouse owns all or part of a closely held business, its value may become a central issue in the division of the marital estate. A valuation engagement may involve:
A dispute among owners may involve a proposed buyout, alleged self-dealing, unequal compensation, disputed distributions, related-party transactions, or disagreement over what an interest is worth. Bailes & Co. may assist with:
A valuation may be required when a business interest is transferred through a gift, included in an estate, contributed to a trust, or otherwise involved in estate-planning work. The engagement may require coordination with:
The valuation should be based on the relevant date, ownership interest, records, assumptions, and intended tax or planning purpose.
Owners, buyers, advisors, and lenders may seek an independent valuation when considering a transaction. The work may help:
A valuation is not the same thing as a guaranteed sale price. Market conditions, negotiations, buyer motivations, financing terms, synergies, and deal structure may affect the amount ultimately paid.
Family businesses and other closely held companies may need a valuation before transferring ownership to children, employees, partners, or a third-party buyer. A valuation can support:
A buy-sell agreement may rely on a formula, fixed value, appraisal process, or other valuation mechanism. Problems often arise when:
Bailes & Co. can provide valuation and financial analysis within the agreed scope. Legal interpretation and drafting remain the responsibility of the client’s attorney.
A lender, investor, surety, or other financial stakeholder may request a valuation when evaluating collateral, ownership, financing, expansion, or a significant transaction. The required work should be confirmed with the requesting party before the valuation begins so that the resulting report is appropriate for its intended use.
A valuation may also be needed when a business interest is contributed to a charitable organization or becomes part of another tax-sensitive transaction. These engagements should be coordinated with the client’s legal and tax advisors and structured around the applicable reporting purpose.
Who we serve
We assist owners who need to understand or support the value of a closely held company or ownership interest. Common situations include:
Attorneys may engage Bailes & Co. as a consulting or testifying expert in matters involving:
The scope clearly identifies whether the firm is acting as a consulting expert, testifying expert, neutral professional, or valuation advisor.
Fiduciaries and family members may need a valuation for:
Bankers, wealth advisors, business brokers, investment professionals, insurance professionals, and other advisors may need an independent valuation to support planning or a proposed transaction.
Industries
Bailes & Co. has performed valuation work across multiple industries and circumstances, with particular emphasis on manufacturing, distribution, construction, professional services, family businesses, and oil-and-gas-related companies in Dallas, North Texas, Tyler, and East Texas.
The analysis
A valuation is based on more than one year of profit or a simple multiple. Depending on the engagement, the analysis may consider:
An adjustment is not automatic. It must be supported by the facts and the purpose of the valuation.
The valuation professional may consider the company’s industry, market, competitive position, risks, economic conditions, and other outside factors relevant to the valuation date.
Methodology
A valuation professional may consider one or more recognized approaches depending on the company, available information, ownership interest, and purpose of the engagement. The weight given to each depends on the facts.
Estimates value based on the economic benefits the business may be expected to produce. It requires assumptions regarding earnings, growth, risk, and future performance.
Compares the business with relevant transactions or publicly traded companies when sufficiently comparable information is available. No two businesses are identical, so professional judgment is needed.
Considers the value of the company’s assets and liabilities. It may be particularly relevant when:
Engagement type
A calculation engagement generally involves agreed-upon valuation procedures and a more limited scope. The professional and client agree on the approaches, methods, and procedures to be performed, and the resulting calculated value is based on those defined procedures.
A conclusion engagement generally allows the professional to consider the approaches and methods deemed appropriate under the applicable professional standards. It typically involves broader analysis and results in a conclusion of value supported by the work performed.
The appropriate engagement depends on:
What you receive
The report format should be agreed upon before substantial work begins.
Deliverables depend on the engagement scope and intended use. They may include:
The engagement
We identify the business or interest being valued, the valuation date, the intended use, the parties involved, the standard and premise of value, the reporting requirements, and whether litigation is anticipated. A conflict check may also be required before substantive details are discussed.
The firm may request historical financial statements, business tax returns, general-ledger information, ownership documents, operating or shareholder agreements, buy-sell agreements, management information, debt and asset schedules, budgets or forecasts, and industry information. The exact request depends on the engagement.
The valuation professional studies historical performance, ownership, operations, financial condition, industry factors, risks, and other relevant information. Questions or missing records are addressed as the analysis progresses.
Reported financial results may require adjustments to better reflect the economics of the business for the intended valuation purpose. Each proposed adjustment should be analyzed and supported rather than applied mechanically.
The professional considers the available income, market, and asset-based evidence and applies professional judgment based on the engagement scope.
The findings are documented in the format required by the engagement — explaining the scope, information considered, methods applied, assumptions, limitations, and resulting conclusion or calculated value.
Bailes & Co. may meet with the client, counsel, family members, or other authorized advisors to explain the analysis and answer questions.
When the matter is contested, the firm may also assist with settlement discussions, mediation, deposition preparation, review of opposing reports, rebuttal analysis, and expert testimony.
In dispute
Robert Bailes has provided expert reports and testimony in state and federal courts across Texas and Louisiana, in matters including marital dissolution, damages analysis, tracing, fraud, and loss determination.
Explore Litigation Support →A valuation used in litigation must be prepared with the contested issues in mind. The work may involve:
Planning
The valuation professional provides financial analysis. Attorneys remain responsible for legal documents and advice, while investment and other advisors remain responsible for their respective areas.
Explore Tax Planning →A valuation used for estate, gift, or succession work should be coordinated with the planning purpose and the client’s other advisors. The engagement may involve:
The credential & the people
The Accredited in Business Valuation credential is held by CPAs who satisfy the applicable experience, examination, education, and professional requirements of the American Institute of Certified Public Accountants. For clients, attorneys, fiduciaries, and advisors, it provides a meaningful indication that the professional has specialized valuation training in addition to a broader accounting background — and it matters because named professionals hold it.
Frequently asked questions
Related services
Financial analysis, expert reports, damages work, asset tracing, deposition assistance, and testimony in contested matters.
Learn more →Evaluate tax consequences before a business sale, ownership transfer, gift, succession plan, or other important transaction.
Learn more →Investigate financial irregularities, trace transactions, quantify potential losses, and support counsel.
Learn more →Evaluate succession, ownership, financing, profitability, acquisition, and exit-related decisions.
Learn more →Get started
A credible valuation starts with a clear understanding of what is being valued, why the analysis is needed, who will use it, and which deadlines or disputes may affect the engagement. Speak with Bailes & Co. before assuming that a simple multiple, an old buy-sell value, an informal offer, or an internal estimate will answer the question.
Meet with Bailes & Co. in Tyler or through the Addison office by appointment.
Reviewed by Ryan Bailes · Last reviewed July 27, 2026