13Jan 2017

Improve Value & Performance with a Business Valuation

When do you need a Valuation?

A few Valuation Basics: Improve Value & Performance with a Business Valuation

Improve Value & Performance with a Business Valuation.  Maybe you are new to the business world or never needed a business valuation until now. Read on to learn the basics of what valuations are.

Valuation is a simple term to define; it is the process of estimating what something is worth. This could refer to you personally, your business, or even 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, wills and estates, divorce settlements, business analysis, and basic bookkeeping and accounting. Since the value of all things will fluctuate over time, valuations are as of a specific date. Valuations do not last forever; you will need to get them whenever a big event comes up. Remember value always changes.

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

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

Personally, you will probably purchase life insurance someday or maybe that time is now. You will need a valuation to determine how much you are actually worth.

Business situations may 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 Avoidance
  • Life Insurance
  • Shareholder Agreements
  • Tax Considerations
  • Buyer/Seller Agreement

KNOWLEDGE IS POWER. It is recommended that a business valuation be done every two years.


Business Valuation & How to Improve Value & Performance is what Greg, CA learned from Dale Richards

Business Valuation Principles & How to Improve Value and Performance are what Greg G, owner of a legal litigation firm in Southern California, learned from Dale Richards’s presentation to his Vistage Group in Carlsbad, CA. He has used other valuation firms but they do not provide near the data and knowledge is power, that Excel Management Systems, has for clients. Then a big bonus on how to increase revenue, profits and value with Dale’s top seven ways. Great day Dale

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