Think you know how much your business is worth?
Your business is likely your largest asset so it’s normal to want to know what it’s worth. The reality is owners of private companies generally don’t have a realistic understanding of the intrinsic value of their business. The closest that many business owners come to putting a value amount on their business is taking note of what other comparable local companies sold for in the past. Having a business valuation done is a good idea, even if you have no intention of selling in the near future.
Certain legal situations that are part of proactive financial planning as well as unexpected circumstances could prove a business valuation well worth your time. Examples include:
- For estate-planning purposes, or to settle an estate
- When one owner wants to buy out another, or when family members want to be bought out
- When assets need to be redistributed because of a divorce
- To satisfy the requirements of banks and other lenders
In these situations, a complete and thorough business valuation is not only useful but necessary. The good news is through our affiliation with Smith Brothers Insurance, our clients have access to Smith Brothers Financial.