Business Funding
15Nov 2017
Nov 15, 2017

Business Planning & Funding | Begin with a Business Valuation

Business Planning & Funding | Begin with a Business Valuation

If you are new to the business valuation or never needed a business valuation until now, business valuation is a simple term to define a process of estimating what a business, estate or property is worth. This could refer to you personally, your business, or even intellectual property such as a patent.

Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Business valuation is used by financial market participants to determine the price they are willing to pay or receive to perfect a sale of a business.

In finance, valuation analysis is required for many reasons including tax assessment, estates, divorce settlements, business analysis, and basic metrics on business performance. Since the value of all things will fluctuate over time, valuations are,  as of a specific date. Valuations do not last forever; it is recommended that a business valuation is completed every two to three years or whenever the need arises. Remember value changes.

There are many reasons why someone would need a valuation done. Maybe you are selling your business. When you sell, a valuation will be needed to determine how much your company is worth.

If your company is getting to the stage where you want to buy out a company or maybe complete a merger. You will need a valuation.

Key person life insurance reduces risk and provides resources in case of a loss of key personnel. A valuation could be used to determine how much insurance you need.

Business Valuations are needed for many business situations and include:

  • · Employee Stock Option Plans – where IRS rules can require annual market valuation data
  • · Merger/Acquisitions
  • · Partial Business Buyout
  • · Financing or Investment
  • · Estate & Gift Taxes
  • · Purchase Allocation
  • · Fairness Opinion
  • · Litigation
  • · Life Insurance
  • · Shareholder Agreements
  • · Tax Considerations
  • · Buyer/Seller Agreement

Dale Richards created the expansion business plan for Marian Coman


Dale Richards’ created the expansion business plan for Marian Coman Romania to grow with additional capital from 20% to 90% growth per year. In three days of joint work, a detailed plan was created with novel proprietary organizational techniques to allow potential funders to see the objectives and details quickly to ensure success.

Learn more about Business Valuation Principles by Dale S Richards



Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit to learn more about Dale and business valuation services.

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