Your Business Valuation Brings Value to Your Company
The Answer to Your Key Question: “How Much is My Business Worth?”
A business valuation can serve as an important tool for business owners. Can is the key word because your business valuation is only as reliable as the valuation methods used to create it.
Exactly What is a Business Valuation and What Does It Do for You?
A business appraiser assigns a value to your business and explains in detail how that value was derived. The following are some circumstances where an owner is likely to benefit from a business valuation:
Before Selling Your Business, You Have to Know What Your Business is Worth
Putting your business up for sale without having a business valuation first puts you at risk for being overpriced or leaving hard-earned proceeds on the table. A company valuation performed prior to selling your business establishes a reasonable market price.
Most small-to-mid-market business purchase transactions involve bank financing, which requires a third-party valuation. The business valuation validates the purchase price to both buyer and lender.
Your Business Valuation Helps Guide Strategic Planning
As a business owner, your business is likely your most valuable asset. You and your financial advisors probably monitor the balances in your bank and retirement accounts. This critical data helps determine your short-term and long-term strategies.
Ensuring that you have accurate information on your business’s value, which is a significant portion of your net wealth, should be an immediate goal for any business owner. Knowing the value of your company and its assets, as well as understanding the factors that impact value are critical for strategic planning for both your business and your personal life.
Learn How Close You are to Your Exit Strategy
By considering the current value of your business, the factors impacting its valuation, your company’s projected financial future, and your ultimate goals, you can estimate the best and financially lucrative time to exit. With an exit date in mind and confirmed feasible for your goals, you can begin confidently planning.
Business Valuations are Required for Determining Value for Other Reasons
Partnership buyouts, divorce, litigation, estate settlements and gifting are examples of situations where an accurate valuation is required. Regardless of the purpose of the business valuation, it’s imperative that it be performed by an independent business appraiser to avoid any alleged conflict of interest.
“How much is my business worth?” Stop wondering and get a reliable, accurate answer. We will provide a business appraisal report performed by a professional, accredited third party appraiser. Talk to an Apex advisor today regarding your business valuation.