You have worked hard to establish your business, but do you know what the business is worth? Knowing the value of your business is beneficial to its operation in many ways. In this article we put together five reasons you need a business valuation.
Understand Your Current Position
Having a baseline value for your business will give you a solid place to start, no matter what your next step will be. Knowing how you compare in your market is information every business owner should possess.
Also, knowing where you are currently is one of the biggest factors in setting yourself up for future growth. With a baseline valuation you are able to generate informed financial goals, business strategies and marketing objectives leading your business forward in a positive direction.
Successful succession planning starts years before the plan is put in action. As part of creating the plan, business valuations are key. Knowing the current value of your business will give you guidance on not only where you are currently, but possibly things that need to be accomplished before stepping away.
Making business plans, marketing plans, etc. are all part of the business process, just as a litigation plan should be. While it may never need to be put into action, having the plan ensures you are prepared should you need it. Litigation can come in many forms, including shareholder disputes, marital dissolution, and fraud. The common denominator in all these situations is the same: how much is the business worth.
Again, planning is key. The value of your business will determine certain aspects of your estate tax planning. Does the value of your business exceed the federal estate tax exemption? Planning ahead and performing a business valuation will allow you to make any necessary adjustments and can help you maximize what your heirs will receive after taxes.
This one may seem pretty straightforward, however, we believe it comes down to who you engage to perform the valuation. The Forensic Accounting and Valuation Services team at Schechter Dokken Kanter (SDK) is second to none. We are here to make sure you and your business are in the best position and ready for whatever comes next.
Are you ready to take the next step and partner with the team at SDK for your business valuation? Reach out to one of the Senior Managers on our Forensic Accounting and Valuation Services team, Ryan Stretmater, to start the conversation today. He can be reached by telephone at 612-332-9351 or through email at firstname.lastname@example.org.