How to Value a Business
How Much is My Business Worth?
Understanding how to value a business is an important part of being a business owner. Surprisingly, many people can tell you the value of their home, car, or motorcycle, but they are unsure when it comes to their company value. Helping business owners determine the value of their business is essential at the time of transition, but it can also help with short term and long term growth plans.
We’ve had the unfortunate experience of explaining to business owners that their business wasn’t quite worth what they thought it was worth. This is bad news for the business owner that is ready to sell right now. No one likes to find out that they are going to have to delay a transition or retirement plan.
Therefore, we encourage business owners to get a certified company valuation done 3-5 years prior to their transition target date.
We believe this knowledge will help you better understand the necessary steps to prepare your business to meet your transition goals. Not only will this knowledge help you accomplish your long term goals but it will help you understand the short term opportunities and adjustments you have in front of you right now.