“What’s My Business Worth?” A Business Valuation Can Help With the Answer

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Written by BMSS Supervisor Dalton Hopper, CFE

One of the most commonly asked questions from clients is, “What’s my business worth?” Whether you are planning to buy or sell a business, seeking financing for expansion and growth, preparing for an eventual exit, facing litigation, or arranging an estate, understanding the value of your business is crucial. The process of valuing a business determines the current worth of the business by evaluating all aspects of the business and considering objective measures. Our team of business valuators assess both the historic performance as well as the future outlook of the business. Most importantly, the process of valuing your business requires both expertise and an advisor who understands your business.

Answering this question can be difficult without the right level of analysis and insight, especially in the post-COVID-19 business environment where awareness and management of your business are essential for the health of your company. Additionally, more business owners are placing an emphasis on planning for the unexpected. Our sound methodology and trusted opinion can provide clarity in any scenario your business may face, including:

  • Standing up to IRS scrutiny regarding estate and gift taxes of closely held corporations,
  • Calculating your business’s value in this active M&A market which is vital to commanding top dollar and understanding your tax liability, and
  • Communicating the value of your business to lenders, creditors, and investors in order to access the capital needed to expand and grow in the current economy.

Business owners know firsthand that there is more uncertainty in today’s business landscape. Coupled with the fact that over 50% of business owners are over 50, planning for the future is more important now than ever before. While business owners can be hesitant to find out the answer in some instances, our team of experienced advisors can provide clarity and insight that ultimately brings peace of mind to the unknown.

For more information, you can read our brochure, visit our website, or call our office at (205) 982-5500.

About BMSS

BMSS Advisors & CPAs was established in 1991 with the vision of creating a CPA firm that would provide peace of mind for its clients while sustaining a healthy, happy culture for its employees. As this dream has been realized, BMSS has grown to become one of the Southeast’s top advisory and accounting firms, now with eight offices throughout Alabama and Mississippi.

The CPA firm specializes in several industries, including (but not limited to) manufacturing, wholesale distribution, construction, technology, nonprofit, and government contracting. In addition to tax planning, compliance and assurance services, the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits.

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