06 Feb Do you know your business’s value?
Knowing the value of their business helps owners make important decisions for their company, including when to raise capital and how to ask for capital or a loan from investors or banks, understanding when to exit and their exit strategy and when to purchase another business in efforts to strengthen their own offering. An inaccurate business valuation can cost a business millions, either by the owner selling it for too little or by paying too much for a company they’re acquiring.
When it comes to knowing how a business valuation strengthens a business, knowledge is always power. It gives business owners the ability to remain ahead of their competitors and potential purchasers, keeping owners well prepared for any situation or offer that comes their way.
Being unaware of valuation information means that business owners do not have sufficient insight into key areas of optimal knowledge, such as the right capital structure for the business, and the proper insurance coverage needed to protect it. This, in turn, can cost them thousands of dollars each year that they simply cannot afford to lose.
When you are selecting someone to help to value your business it’s important to look for those who are qualified to do this specific role and who have a good track record. If you know your accountant well and they know you and your business well, then they will have a good insight into how your business is running and the potential of your business.
My expertise includes tax, accounting, and financial services for small businesses, professional firms, non-profits, and individuals. In addition, I am accredited in Business Valuation by the AICPA and have extensive experience as an expert witness in Circuit and District court. I enjoy handling valuations for my clients and clients referred to me by local professionals. If you are thinking a valuation of your business is timely and important to your decision-making process, contact me.