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Independent Business Valuation

WHAT IS AN INDEPENDENT BUSINESS VALUATION?

A business valuation determines the market value a business owner could reasonably get if they were to sell the business.  An independent business valuation is an independent analysis of what your business is worth based solely on factual business information. Moreover, the value of your business is in the market. If you want to know what it could be worth, there’s no one-size fits all answer. Estimating the value of a business is not an exact science. It’s more like an art, combining elements of finance, psychology, and economics. The BV (business valuation) process may be one of the most important tasks you’ll ever complete. Business valuation is a comparative process, not an absolute one. The value of your business will be based on the prices paid for similar businesses in recent transactions.

WHAT IS THE MAIN REASON FOR A BUSINESS VALUATION?

I have included below the main reasons for a Business Valuation. These come up time and time again. There are other purposes that I did not list below.

  • Tax audits.
  • Divorce settlement disputes or litigation
  • Estate planning issues such as qualifying a business interest in a family limited partnership for estate tax purposes.
  • Business selling due diligence, including the valuation to be used for business purchase.

Asset Valuations Group compile hundreds of business valuations a year. Additionally, please read more if you require a valuation.

WHAT ARE THE TYPES OF BUSINESS VALUATION?

In the world of valuations, Business valuations can take two forms: enterprise value and equity value. Furthermore, I understand that these are different names for the same business valuation methodology. In light of the above, the BEV takes into consideration business earnings while the BEQ only looks at assets and liabilities. Business valuation is a separate field from investment appraisal or balance sheet appraisal, although there are some common elements.

Additionally, it is important to recognise your business’s assets and liabilities. Likewise, it can be difficult for a company with an overvalued asset position. This is why it is important to get a business valuation. Do not assume, get professional advice!

An independent business valuation should be conducted by someone who has no relationship to any other party involved. Moreover, not only is an experienced valuer important but so too are those with the correct qualifications and credentials for this task!

Subsequently, as a business owner, you can expect that your valuer will provide guidance on the future prospects of your company. Furthermore, they’re also going to help determine what is needed in order for it be sold fairly at market value. Business valuations are be performed on small businesses, family owned businesses and startups. Please contact us below!

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