Knowing the Value of Your Business is Essential, Especially When Looking to Sell, Transition Ownership or Secure a Loan
During the lifetime of a business, there are many instances where it’s imperative for business owners to know and understand the true value of their business – especially when the owner wants to exit.
Examples include:
- Estate planning including gifting
- Shareholder disputes or exiting
- Adding shareholders
- Marital dissolution
- Retirement
- Mergers and acquisitions
- Financial reporting
- Employee stock ownership/options
- Buy/Sale/Exit a business
Other key business events such as business recapitalization, stock buybacks, and other legal or taxable events also require a certified appraisal. It’s also common to need a certified appraisal when applying for certain growth capital financing, like SBA loans.
The Value or Worth of a Company isn’t a Single Number on a Ledger or Something Easily Generated in QuickBooks.
Understanding the value of your business is an important part of business ownership, but it’s also important to understand what goes into the valuation and how it’s decided. And, while the expense and depth of analysis in a certified business appraisal isn’t always necessary, when you do need one, you need one done right.
Many details and considerations go into a certified business appraisal. Besides an analysis of the company’s financial details, the Business Certified Appraiser (BCA) decides on the necessary valuation approaches and methods to apply to the business being appraised. Valuation approaches typically fall within three broad types: asset, income, and market and within these there are numerous valuation methods which are a more specific way to determine value. A BCA will look at all approaches and methods.
The Bottom Line
When you need a certified business appraisal, a less costly calculation of value or exit resources contact Mondek Solutions so we can connect you with one of our Certified Analysts. For more information call us at 815-382-1987 or by email at info@mondeksolutions.com.