An independent valuation provides you with answers to the questions you often need to ask about the value of a business. Am I getting the best price for the sale of my business? Is the asking price too much?
We are experienced
in business valuations and are able to provide you with simple guidelines and formulae for evaluating the worth of a business.
Choose Key Accountants for a professional and accurate valuation service.
If you have
not had an assessment of your business' value you should consider it. A business valuation provides the business owner with multiple facts and figures regarding the actual worth or value of the company in terms of market competition,
asset values, and income values.
Here are 4 benefits of getting a business valuation.
1. Better Knowledge of Company Assets
Specific numbers need to be gained from valuation processes so that business owners
can obtain proper insurance coverage, know how much to reinvest into the company, and how much to sell your company for so that you still make a profit.
2. Understanding of Company Resale Value
If you are contemplating
selling your company, knowing its true value is necessary. This process should be started far before the business goes up for sale on the open market because you will have an opportunity to take more time to increase the company's
value to achieve a higher selling price. As a business owner, you should know what your company's valuation is. You also need to be aware of what your company's resale value really is in order to negotiate a higher selling price.
Use black and white statistics, provided by a valuation firm, to solidify your stance on the higher selling price.
3. Better During Mergers/Acquisitions
If a major company asks about purchasing your company, you
have to be able to show them what the value is as a whole, what its asset withholdings are, how it has grown, and how it can continue to grow. Major corporations will attempt to acquire your business or merge with it for as little
money as possible.
When you know what your business valuation really is, you are able to negotiate your way to the appraised valuation numbers provided by a well-known and reputable valuation determination service.
4. Access to More Investors
When you seek additional investors to fund company growth or save it from financial disaster, the investor is going to want to see a full company valuation report. You should also provide potential investors with a valuation projection based upon their provided funding. Investors like to see where their money is going and how it is going to provide them with a return on the investment.
You are more likely to gain the attention of a potential investor when they can see that their funds will carry the company to the next level, increase its value, and put more money back into their own products.