Do you know the value of your business?
Remarkably, many business owners do not make the time to analyze the value and potential of their business on an ongoing basis. You have worked hard to build this asset, and you should know the value of your hard work in the present and for the future.
Here are some important reasons you should get a business valuation annually to plan for succession or to sell.
Plan your retirement– Are you nearing retirement age? Have you given thought to an exit strategy? As with anything in business, you need a plan. Waiting may mean that you end up rushing to close or sell your business and get less back than you put into your business. A business valuation helps you plan your exit strategy with less worry for you, your family and your employees.
Develop a succession or sale plan– Plan ahead before you make your succession or sale plan. Many business owners plan their succession out with a timeline covering at a few years ahead, and that includes examining a business valuation to stay on track. It helps you make decisions and assess exiting strategies.
Insurance – Ensuring proper protection for your asset– Knowing the real value of your most prized asset allows you to protect it best. You must protect your business in case of taxes, legal challenges, death or divorce, and in divorce, the appraisal of the business as an asset will come up.
Working capital – Work with lenders– You may need an extra financial push to grow. Maybe you are ready to acquire a new business. Lenders often require a business valuation before signing off on a loan or line of credit, depending on the size and type of your business.
Trust/Estate Planning– Understand the proceeds a sell would bring to plan for tax strategies. Your business worth determines what kind of tax planning you need to do for your estate.
There are many more. So let’s sit down and discuss. Contact us today.