Business owners often find that they need to place a dollar value on their business. For most business owners, their business represents one of their most valuable assets. Properly valuing this asset can be one of the most important and critical steps ever taken by a business owner.
The need for a business valuation often arises when a business or business interest is bought or sold; during merger and acquisition discussions; when planning an estate or going through a divorce; when restructuring or obtaining additional financing for a business; during bankruptcy proceedings; in regard to employee stock ownership plans; and during the dissolution of a partnership or joint venture.
The vast majority of businesses in the United States are not traded on an active stock exchange and, thus, do not have a readily available market value. All businesses are unique and there are no magic formulas for calculating the value of a business. Valuations are based, to a large extent, on the professional judgment of the individual performing the valuation. Professional judgment is based on experience and an in-depth understanding of the business and the metrics that are important to it.
If you would like to know what your business is worth, or need to know due to one of the forgoing reasons, give one of our professionals a call.