If you have not had an assessment of your business’ value on at least three levels over the course of the last twelve months, 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.

This information is something that all business owners should have available.

Here are 5 benefits of getting a business valuation.

1. Better Knowledge of Company Assets
It is significantly important to obtain an accurate business valuation assessment. 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.

3. Obtain a True Company Value
You may have a general idea of what your business is worth, based on simple data such as stock market value, total asset value, and company bank account balances. But, there is much more to business valuations than those simple factors. Work with a reputable and credentialed valuation specialist to ensure that the correct numbers are provided.

4. Better During Mergers/Acquisitions
When you know what your business valuation really is, you are able to negotiate better. It will help both sides come to a comfortable agreement.

5. 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 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.

Conclusion
Once your business’ valuation has been established, set new goals to increase the company’s value over the next year. Every year, you should set time aside to compare the previous years’ valuations to measure growth, losses, and notice where room for improvement is. Knowing what every component of your business is worth is invaluable information for business owners to have. As both an ABV and a CPA, Dan DeHoek feels strongly that owners operate from an informed position. Give DeHoek & Company a call for your businesses valuation needs, 616-456-5530.