Business Valuation

Do You Need a Business Valuation?

A business valuation can be a good starting point if you are considering selling your business. Every business owner should have a solid idea of what their business is worth and why, even if they are not ready to sell. By knowing the “why,” you can work to grow the value.

There are several distinct types of business valuations.

Broker’s Opinion of Value

Business brokers sometimes provide a Broker’s Opinion of Value. Since, in the end, a business is worth what a buyer will pay for it, sometimes a Broker’s Opinion of Value is useful to determine an asking price and put your business on the market.

Standard Valuation Report

A credentialed appraiser can provide a standard valuation report. Standard valuation reports are often needed for larger and more complicated businesses. They are useful for internal business planning and exit planning. They often include valuation summary based on market and asset approaches, capitalization of cash flow method, multi-stage growth method, financial and industry benchmarking ratios.

Certified Reports

Some situations require more than a credentialed appraiser produces a certified report. The appraiser’s certification is required for gift and estate tax matters, divorces, and other legal matters. Certified reports require more in depth work by the appraiser, take longer, and are more expensive.

If you are interested in a valuation, please contact BizReady for more information.