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