What’s Your Business Worth?
The answer I get most often from a business owner is either “I don’t know” or “I’ll have to ask my CPA”. Neither of which is a very good response and can lead to mismanagement of key issues involving your business.
A Business Valuation cannot be answered by most CPAs since it takes a unique skill set and most are not certified to provide a valuation.
The “I don’t know” answer is an even worse response when you take into consideration for most business owners their business is their greatest asset. Even more dangerous if your business is your main retirement asset.
Consider that without a valuation are you sure you have properly protected your business from a loss of fire, lawsuit, loss of a key employee, or if a partnership the death or disability of a partner.
If you are considering the value of your business as your major retirement asset how will you know when it’s worth enough to retire?
Even more important how do you build an exit strategy from the business to maximize its value once you want to leave?
These are just a few problems that are created when you do not have an accurate reliable business valuation. In addition, a valuation should be done on a regular basis (yearly, every other year) to make sure your goals are met and in line with the true business value.
Business Valuation
A current business valuation can be very useful if you are trying to expand or update your business through obtaining new capital form a lending source.
Author: Mike Mazzella
Most business owners have experienced the less than favorable environment for obtaining small business loans. However, a current valuation could go a long way towards convincing your lending source.
At Benefixx we like to start a new relationship with offering a free business valuation. The valuation uses five commonly accepted valuation methods and is prepared by business valuation experts.
Is anything free ever worth it?
What do you have to lose?