Article
Business valuation FAQ: Benefits, methods, and process overview
Oct. 30, 2023 · Authored by Calvin Swartley
A business valuation is an important process for any business owner, regardless of the size or type of their business. It’s particularly important if a business is planning a transition or change in structure, or an estate or succession plan is required.
A professional valuation can help a business owner determine if they’re making the most of their investments. By understanding what goes into a business valuation, as well as who should perform it and when it should be conducted, owners can make informed decisions about their business.
This article will provide an overview of business valuations and answer the following questions.
What is a business valuation?
A business valuation is the process of estimating the value of a company and provides an estimate of the company’s worth for situations such as preparing for financial investments, or selling or buying a business.
Valuation reports can help you assess your strengths and weaknesses so you can make informed decisions about how best to increase profitability in the future.
Valuation reports can also be instrumental when seeking financing or investments from lenders or investors.
What factors are used in a business valuation?
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.