Business Valuations for Business Owners:
You Just Need To Answer 3 General Questions To Get Your Valuation
- What is the INDUSTRY your company is in?
- WHY do you think a valuation is needed?
- What is the SIZE of your company?
Why Value a Business?
As a business owner or professional, you will run into situations where you need to professionally “value” your business. Business valuations are often done as part of any divorce or estate planning or asset/financial related process you are going through.
Do you need to Sell your business? We can help! As Valuation Experts, we understand the value of your Company, and we help buyers see and understand that value as well.
Insurance salesmen will often request a business valuation to determine the size of certain types of insurance policies.
Business valuations are often conducted when you are anticipating a financial event in your business such as adding a partner or equity owner; the creation of an ESOP (Employee Stock Ownership Program); or prior to distributions to one or more investors.
A buy-sell agreement sets up parameters for the transfer of ownership interests following stated “triggering events,” such as an owner’s death or long-term disability, loss of license or other legal incapacitation, retirement, bankruptcy, or divorce. The agreement typically will also specify how the purchase price for the departing owner’s shares will be determined, such as by stating the valuation method to be used. If this has not been done in advance, a business valuation will be needed.
Three main approaches are used for most business valuations:
- Asset-Based Approach
- Earnings Value Approach
- Market Value Approach
We can provide the expert guidance on which to use for your specific and unique set of circumstances.