When we ask business owners if they know the value of their business they generally answer in one of two ways.
I have no idea what my business is worth.
Translation: “I have not spent the time or effort to understand the value of what I’ve created.”
I know about what my business is worth.
Translation: “I have no idea what it is worth, but I don’t know you well enough to admit that to you!”
Why you need a Valuation
Every business owner should know the value of their business. You’re on the road to some destination. Wouldn’t it be nice to know where you are right now? Wouldn’t it be even better to have a map and directions to get from where you are to where you want to go?
We can help you create the map, and guide you along the path you choose.
Our Valuation Process Overview
To ensure that we deliver the exact report you are expecting we follow the Valuation Authority Way. We are not only experts in Business Valuation, we also market and sell businesses which gives us great insight into how buyers perceive value. We know what you need to do to increase value, and we know the risk factors that can cause buyers to stay away.
If you want to discuss the value of your business:
Reasons for a Valuation
There are a variety of reasons why a business owner might need a valuation but the most important one is to know where you are right now. You won’t get to where you want to be if you don’t know where you are.
There are a plethora of legal reasons why you need a valuation. The one we encounter most is when a client needs an opinion of value in partnership dispute or marital dissolution cases involving a business. If you need expert analysis to determine the value of your client’s interest in a business contact us.
Considering an Acquisition
If you are considering buying a business you should know the fair market value of the business. We determine FMV only after we thoroughly understand the financial history, the factors related to enduring value, and the trajectory of the company. We do a large chunk of your analysis during due diligence.
“Wow! If that is all it’s worth I am going to have to work another 5 years!” We hear the lament from far too many business owners, and it doesn’t have to be that way. The process of building a business with enduring value starts with knowing the value of your business today.
Factors Affecting Value
Valuing a business is far from being an exact science. The analyst must apply considerable judgment throughout the process. The financial history of the business is certainly important, but so are factors related to the amount of enduring value the owner has created. Many analysts neglect to consider this, or recognize it, but without an easy way to quantify the effect on value they disregard it.