You may be one of the most successful business owners in your industry and you may have some of the best management personnel available on your staff. If your company has expanded through the years because you’ve offered an in-demand, high-quality product or service, chances are good that you’ve been more than profitable. However, this level of success doesn’t necessarily mean that you know the real value of your business.
This lack of knowledge is by no means an indication of any failing as an owner or from within your management; however, your expertise as a creator and owner of a successful business is no guarantee you’ll know how to formally assign a value to the organisation. Yet knowing this value is important in a number of different situations, which include the necessity of raising capital, planning your estate, or selling your business.
If you find that you’re facing such situations as refinancing your company, you’re seeking a business loan, or it’s necessary to know business value for legal reasons, you might want to talk to someone for a Trident business valuation. This step might be needed for a divorce settlement, a company restructuring, or as part of an insurance claim process. It’s important to understand the difference between an appraisal and a valuation before you start.
An appraisal might be conducted when listing the business for sale in the general market in order to determine a price range, however narrow. A valuation will be completed for different reasons in a different manner because the process will produce a specific dollar amount to be presented in a certain format. This process is more in-depth because it considers such elements as industry growth, goodwill to be transferred, required permits and licenses, competition, and many other details.
When specialists conduct a business valuation, the process is quite structured to make sure that the result is accurate and fits the purpose exactly. The valuation must also meet strict accounting guidelines as established by the Accounting Professional and Ethical Standards Board.
The Right Value
This is a very important step if you’re thinking about selling your established company because you will have the most accurate information available to help you get the price you need. For a business sale or any other important reasons mentioned earlier, you need to know exactly what your company is worth.
You understand that your business is unique and has a value different from any other, even in the same industry. Don’t make the mistake some business owners make by selling their companies only to discover that they’ve let them go for much less than the true value. Get in touch with a leader in the field of business valuation today. You’ll be glad you did.