What is a Business Valuation?
A business valuation is the most effective management tool in today’s workplace. It determines a business or personal funds exact value. By determining the exact value, adjustments can be made to direct you or your business toward the most profitable outcome. Business valuations are also a valuable tool in assessing and dividing assets among groups or spouses.

What are the benefits of a Business Valuation?
A business valuation offers a non-partial look at the inner workings of your business, assessing your net worth at its true value. This procedure allows the clearest look at the strengths and weaknesses of your company. With this new information, companies can make adjustments to their management and budget, and avoid unwanted financial mistakes.

Why should I have Business Valuation?
Not knowing the exact worth of you company can be disastrous when considering long-term decisions. A good example is when a would-be seller prices their company too high and drives away potential buyers, or when a company prices itself too low and loses out on profit. In situations where stock or assets are being mediated, it is also important to know if you or your companies are receiving a fair portion. In order to achieve the highest profit possible, you must always know the value.

How is the outcome of a Business Valuation determined?
In performing a business valuation, the value of tangible and intangible assets is considered. Tangible assets usually include objects such as furniture, machinery, and other items of value. Intangible items are items such as trademarks, business good will, and name recognition. Most often, the intangible items prove far more valuable.

In what situations are Business Valuations needed?

• Estimate estate tax on death
• Divorce
• Negotiate sell, purchase, merger of business
• Adequacy of life insurance
• Charitable contributions
• Disruption of a business
• Dissenting shareholder actions
• Eminent domain
• Gifting programs
• Gift taxes
• Obtaining financing
• Partner disputes
• Split-ups/Spin-offs
• Succession planning

Is it a complicated process?
Determining a companies’ worth can be a long and complex process. However, the information yielded can be extremely vital to the recipient’s personal or professional life.