Taking the Complexity out of Business Valuation

While it is true that there are several different business valuation methods, they do not have to be confusing. If you have questions about selling your business, it is wise to enlist the services of a business valuation professional who can give you sound advice as to how to go about selling your business. These professionals will be able to point you in the right direction in terms of which valuation method to use to sell your business.

When you look at your business, you probably do not see everything that a valuation service is going to see. You look at your business, while they look at not just your business, but the entire landscape of your industry. Before you are given any kind of idea of what your business it worth, they are going to dig in every nook and cranny to find assets and compare them to liabilities. Your profits will be researched and your company will be compared to other similar companies.

When is a Valuation Needed?

• Merger/Acquisition
• Financing Sale/Investment
• Estate & Gift Taxes
• Purchase allocation/Fairness Opinion
• Employee Stock Option Plans
• Life Insurance/ Shareholder Agreements
• Tax vs. Value Considerations

Which type of valuation services do you need? This is an important question and will affect the results and your final choice of provider. Calculation analysis looks at limited information and is often for people who are thinking of selling but have not made a final decision. Limited valuation analysis is common when the owner wants to save money and time for a fairly informed valuation. Full valuation services involve very detailed information as well as a visit from the valuator to provide the most accurate estimate of the value.

Dale Richards made Complex Valuation easy to understand and apply to raise the value of your company. Josh Newman from New York, New York, said he learned ways to apply operation optimization techniques that Dale presented to make a difference in the value of his company. Josh learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.