Business Valuation Blog | Understanding Buying / Selling a Company

With all the craziness that 2020 has brought along with it, from COVID-19 to civil unrest, to wildfires and storms causing broad power outages, one way of counteracting the uncertainty of your company’s future is to have an updated business valuation completed which not only focuses on historic performance but projected outcomes as well.

Working with you and your company’s key personnel, the certified appraisers at Business Valuation Specialists will walk you through the process and provide insight as to the key information needed to analyze the value of your company with past, present and future scenarios considered.

You may want to consider selling in the current market, capitalize on buying a business which needs further examination, or reaching out to new investors and financial institutions who can provide the necessary capital to get you through these tumultuous times. Regardless of the reasons why, it is always a smart decision to obtain an independent valuation which will hold up to the scrutiny of the parties involved in the transaction.

The experienced, certified appraisers at Business Valuation Specialists are ready to discuss the next steps with you. We look forward to the opportunity to work with your business as you continue to wade through these difficult times.

When it comes to the valuation of a company, it can be easy to consider the need for a business valuation expert and the business appraisals they provide to be a one-time thing. But if you do use this approach, you may be missing on some of the best benefits business valuations can offer your business. Could it be that you need to have a business appraisal performed more often or need to learn how to take the best advantage of your opportunities? Here are a few reasons why business valuation experts can help your company soar.

5 reasons why your company needs a business valuation expert

1. Changes in your business' leadership. When you have a change in ownership or leadership in your business, a business appraiser can help you navigate who gets what. When a partner leaves or a divorce happens, a professional business appraisal helps you determine how much that person's share of the business amounts to and how that cost can be handled without breaking the bank. If the individual leaving the business is doing so under a less than friendly situation, the business valuation will hold up to strong scrutiny if a lawsuit becomes necessary to settle the matter.
2. Shifts in the market. Is the market going through a boom or a bust cycle that is affecting your profitability? How can you stay ahead of the shifts to improve your business' overall standing? A business appraiser can help you determine what changes you can make to keep up with those changes and position your business to come out ahead by taking advantage of the situation. 
3. Changes in the industry. Has digitization or other new discoveries or technologies caused disruptions in your industry? When these types of changes are occurring, it can be really difficult to figure out where to position your business. Deciding whether you should embrace the changes or ride out the disruption is easier when you know what's going on overall.
4. Shifts in business focus. Are you considering entering a new sector or changing the direction of your business overall? By knowing what's going on in those areas, you can prepare your business for that shift to ensure that it will go smoothly and that you'll be able to make a successful shift.
5. Changes in your business' profitability. Has your business become less profitable and you need to know where you're losing money? Maybe you have more money coming in than expected and are trying to figure out how to take advantage of it? A business appraiser can tell you what's going on and how to shift your focus to the change.

By keeping these reasons in mind as you go through your daily operations, you can ensure that you can help your business take advantage of any opportunities that arise without having to worry that you're putting your business at unnecessary risk. Working with your business valuation expert means you can safely grow your business while being guided by expert knowledge of your industry, competitors and business. But what if you're not currently working with a well-qualified business valuation specialist? If you need to be connected with a valuation expert who has experience in and a solid grasp of your industry, please feel free to contact us today. We'd be happy to match you up with the right business appraiser for your company.

If you've been wondering about the value of business appraisals, you're not alone. Many business owners consider having a company valuation performed, but back away from committing to business valuations and end up putting their business in a risky situation. As the new tax year is approaching, lets take a look at how getting the valuation of a company helps a business owner make good decisions that directly benefit their company's bottom line.

Navigating the Changes Ahead

Are you getting ready to retire, pass on the torch to the next generation or sell your business? There are a lot of changes that can happen to your business in the next year If you know what's coming up enough to plan for it, you can maximize your tax savings and make the change in leadership a much easier one for all involved. By finding out your company's value of business through a report prepared by a certified business appraiser, you can meet with your financial advisor or accountant with all the information they need, taking the guesswork out of the process and providing legal documentation as to your company's valuation. This in turn allows them to investigate which options will work best for your future plans. This allows you to move ahead with those plans confidently, because you know exactly where your business is heading.

What's it Really Worth?

If you're considering selling your business or making a merger with another company, knowing your business' actual value gives you a point of strength to negotiate from at the bargaining table.

Being a Little Opportunistic

Beyond knowing how to deal with changes in company leadership or determining your business' true value, having a business valuation performed on your company ensures that you know the exact financial picture of your business. This means you can take advantage of investment or business opportunities that come your way very quickly, without exposing your business to risky propositions or bad investments that could leave it crippled in the short term and taking a long road to recovery. A company appraisal performed by a qualified valuation specialist gives you a much better picture of your business' financial health. That means when a new opportunity comes your way, you'll know very quickly whether it's a good prospect for your business or if you should steer clear of the potential risk the prospect could bring.

The advantages you can gain from knowing the value of business concerns are many, but they only apply if you actually have a business valuation completed on your company. To ensure your company appraisal has legal standing, make sure that you have the company appraisal performed by a qualified business valuation specialist who uses standardized methodology to complete your valuation report. If you have any questions or need help setting up a company valuation for your business, please feel free to contact us and chat with one of our highly-trained and qualified business appraisal specialists.