Many of the business owners are shocked by their business value when they decide to sell. While most have a value goal in mind, few actually determine their current value until it is too late. Set the right bench marks now with a comprehensive business valuation to ensure you meet or exceed your business value goals. Avoid the pit falls and dont leave it too late.
Businesses evolve, and now it’s more important than ever to know your true value every step of the way.
Besides being valuable information for your day-to-day operations, a thorough review and appraisal of your company will also help if you’re trying to obtain a loan, computing for executive compensation, filing for bankruptcy or divorce, or any other current and short-term business issues that need to be addressed promptly.
How Are Businesses Valued?
The valuation of businesses has grown to be both a science and an art. To arrive at a defensible business valuation an expert on valuations needs to follow the standards and norms that have been developed by experts in the business valuation field. Many well intentioned business valuation professionals fail to produce accurate and defensible valuations because they do not possess the knowledge of the “art”. The art portion of business valuation comes from the forces of the market and the constant changing dynamic of expected rate of returns for given risks.
There are several commonly accepted business valuation methodologies, the following are the most common methods: Capitalization of Earnings, Discounted Future Earnings, Adjusted Book Value, Comparable Price, Excess Earnings Capacity. The business valuation expert will carefully utilize the appropriate methods and also utilize the the applicable weights to each of the methods to arrive with a accurate and defensible business valuation.
Why Do I Need a Business Valuation?
A Business Valuation is an important tool because it helps to validate and benchmark the true worth of your company. Once you know the value of your business, you can concentrate your resources on maintaining and increasing its value.
A Business Valuation prepared by a valuation expert serves as a credible value benchmark. Our business valuations are fully documented in a detailed written report and provide you with a realistic, credible, and defensible value of your company.
Contact us to find out more about business valuations.