Business Valuation Resources

There are many reasons a business owner may want or need a business valuation, including negotiating a merger or business sale, estate and gift tax planning, considering new shareholders, attempting to resolve partner or other liability disputes, determining shareholder equity or even marital dissolution. Use this guide to help uncover your business’s worth.

CONTENTS

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Reasons for a Business Valuation

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Valuation Reports

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Valuation Methods

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Preparing for a Valuation

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Business Succession Planning

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How to value a business

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Videos: What's my Business Worth?

Reasons for a Business Valuation

Most business owners are reactive when it comes to having their businesses valued. But there are many times it pays to be proactive. Some valuations are necessities, such as for determining the value of the business interest in an estate. Others are obtained for more elective reasons but nevertheless, they help business owners with planning strategies.

It is a good idea to review these common valuation scenarios, so you can identify when it is time to obtain your own valuation.

What Makes a Good Valuation Report

Most owners already have a predetermined number in their minds when the time comes to establish the value of a company. They often think the value should equal a multiple of earnings or annual sales. However, this method is rarely accurate and is unlikely to maintain merit if the company is sold or involved in litigation. A good business valuation is not only about determining an accurate and reasonable value but also about being able to defend it if needed with a clear and concise explanation supporting the conclusions.

Click to Read: 6 Key Valuation Report Elements

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Valuation Methods

COVID-19 has been a trying time for businesses and may be the right time to take advantage of business transition opportunities. With the current economic situation, gifting programs should be evaluated because of lower company values. Smith Schafer can assist with this evaluation by performing a business valuation. Review the options below.

    Ways to prepare your business for a valuation

    Ready to sell your business? Or planning to keep the business in the family by gifting ownership to a relative?

    Whatever the reason may be – estate planning, mergers and acquisitions, litigation support, equity or debt financing, or marital dissolution – it is vital to engage experienced professionals and prepare for a business valuation.

    We work with business owners to help determine their company’s values relative to their situation or business plan. We take a comprehensive view of all you have invested in your business and what you have created.

    PREPARING FOR BUSINESS SUCCESSION AND MAXIMIZING VALUE

    How much is your business worth and what are your plans for the long run?

    These are questions every business owner will face at some point. Business owners invest many years of time, energy, and personal funds to build a business. Planning for your exit is often one of the hardest things a business owner must do. Contemplating the business you built or help to develop without you is complex, difficult, and emotionally challenging. When succession planning is executed properly, it allows for the orderly transition of management while protecting the exiting owner professionally, emotionally, and financially.

    Read: Business Valuation & Succession Planning

    HOW TO VALUE A BUSINESS

    IF YOU ARE LOOKING TO BUY OR SELL

    Company value is a question on many business owners’ minds. Whether you are considering selling a business or purchasing one, it is crucial to know what your company may be worth. Negotiating price is usually one of the main hurdles in a business purchase. In this article, we dive into the many factors that contribute to the overall value of a business.

    What’s My Business Worth?

    Part 1

    Part 2

    learn more about our Valuation services

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