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Business Valuations

What's my business worth? How do I Appraise the worth of my company? Do I need a valuation?

These critical questions run through the minds of many business owners, so they can equip themselves to secure the future of the company in uncertain times. 

We Provide Business Valuation Services for:

Businesses (Partnerships Included)

Mergers & Acquisitions 

Life Insurance Funding 

Estate 

Litigation Purposes 

VALUATION OVERVIEW

Valuing your business must be an unbiased approach, especially when you are selling the business, applying for financing, and for a variety of other reasons. 

BUYERS vs. SELLERS

But here's the catch – the buyer would want the price to be on the lower end, whereas the seller would like it to be higher. 

For investors, value translates to a higher return than the risk of losing an investment. For the acquiring company, it's about the strategic benefits they'll be obtaining. Both would expect a lower appraised value since that will get them a greater return. But from the entrepreneur's perspective, they'll want a higher valuation.

So, it is tough to determine the true and competitive value of the company. But as s business owner, you would want to ensure absolute accuracy and thoroughness of the process.

At Out of the Box Coaching, we believe that valuations are a foundation for further negotiation and get you closer to the final sales price.

 

WHY HIRE A VALUATION EXPERT?

Hiring a valuation expert can help you in all aspects of business valuations and business transitions at a given point in its life cycle.

Business valuation is an important tool business owners, investors, and other stakeholders use to make informed decisions about buying or selling a business, mergers and acquisitions, financial reporting, tax planning, and other purposes. 

BENEFITS GAINED FROM A PROFESSIONAL VALUATION EXPERT

Using the expertise of a professional can prove beneficial in providing real value for the company and validating whether it will help you achieve your financial goals. 

The exact specifics of the process will depend on your unique circumstances and the purpose of the valuation. A professional appraiser or business valuation expert can help determine the appropriate way forward and provide a detailed analysis of the business' value.

OTHER USES OF A PROFESSIONAL VALUATION

In addition to having an estimated worth of your business, valuation tools can also be utilized for dispute resolution in the following scenarios:

  • Estate and gift taxation

  • Divorce proceedings

  • Establishing partner ownership

Other benefits of business valuation services may include:

  • Analyzing the performance of your business on both horizontal and vertical levels

  • Determining a realistic business value for a successful merger and acquisition

  • Having a fantastic road show if you’re planning to go public

  • Attracting potential employees and planning benefits for the current workforce

  • Getting approved for a loan

ENTREPRENEURS BENEFIT FROM VALUATIONS

Business valuations benefit entrepreneurs in so many different ways. But we have often seen that many business owners do not seek to get their business valued by an experienced valuation expert. They do not recognize that expert assistance is truly beneficial for the future of their business and that these metrics can enable them to have the upper hand in a variety of situations.

Even if you figure out that now isn't the right time to take the leap, you at least get a road map to help you make the needed adjustments to your business in time. You can prepare for your future transition while also avoiding any conflicts along the way.

We hope this at least gives you an overview of your question, "What's my business worth, and do I need a valuation?" It will help you set up a solid framework for separation when you decide to leave the business. 

When you're ready, get expert advice and allow the specialist to devise the right action plan.

Contact the Out of the Box Coaching analysts for better assistance. 

  • Why do I need a business valuation?
    A lot can be discovered with a good Business Valuation. For example: What is it worth? Where are you on the path to the value you would like? How do you measure up to your industry standards? Is your business operating at higher than or lower than industry standards? What valuation methods are best for your business? What are your projections? When is the best time for planning an exit? What do my projections look like to the future? What if I grow by 5% or 20% year over year? What will it look like if I borrow money for growth? Where can I improve within my business? Etc.
  • I’m not looking to sell my business. What would I do with a business valuation?
    Be more informed on how your business stands relative to your competition. Know the health of your business. Know when to target a sale.
  • What are the benefits of having a business valuation?
    Being informed about the true value of your business helps you be a better negotiator. Knowing where to set expectations and how to improve.
  • Does the value of my business change month-to-month or year-to-year?
    Most business value is based on the income, cashflow, and/ EBITDA. That changes month-to-month and year-to-year. So, yes! You want to maintain a constant understanding of the value of your business. Valuations can be updated. Keeping your valuation current doesn’t cost much.
  • Why do I need to think about the exit strategy of my business?
    Most business owners don’t want to think about exiting their business. However, that day will come – one way or another. Knowing when to Exit is always the unanswered question. Business exit happens in one way or another, such as – Shut the business down – dissolve, or walk away Give it to your employees - ESOP Sell the business – New Owners Transfer to family – Next Generation Retirement – Tired of being in the business Untimely Death What Exit are you planning?
  • Who does the actual valuation?
    Our strategic CFO/CPAs with proven experience achieving scale, operating efficiencies, and appropriate metrics in all size companies.
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