If you are in the mood for a merger or buying another business or selling one of your own or considering the new shareholders then it is of vital importance to understand the value of your business. It can come as a handy tool even when you are attempting to resolve various disputes associated with liability, shareholder equity, estate planning or marital dissolution. The valuation of a business can give you the correct idea as to the net worth of your company, not only in terms of capital gains but also the total net of assets as well as liability.
Before you are planning any new thing for your business, be it a merger or a sell off its better you take your time and sit back to get the valuation of the business. The valuation is ideally dependent on many factors. Firstly you should be able to judge the USP of your business; whether it’s a profit making one, or one which has a whole lot of tangible assets, or one which is a fairly new venture with bright prospects for the future. The professional and technical skills of a staff of the business play a key role in getting a good value for any business. Similarly your relationship with your clients, buyers and sellers across your market and the suppliers to and from your business are factors which determine your business valuation. You must analyze your business on an independent platform and find out your position in your sector of the market. Then you need to talk to any financial advisor who can help you in getting the true insight into the valuation in terms of cash flow and management of assets.
A good accounting or a CPA firm has professionally qualified evaluation experts who know the procedure to get the best buy price for your business. They can provide you with the requisite assistance in purchase or sale of closely held business or business interests, management buyouts, leveraged buyout transactions, bank financing, financial restructuring and recapitalization, employee stock ownership plans or ESOP’s, analysis and advice concerning pending offers to purchase. They can even assist you in getting the valuation of your subsidiaries, divisions and joint ventures for spin-off to shareholders and or sale, physician buy-in to medical practices, court appointed valuations in disputes, minority shareholders disputes and litigations, divorce for equal distribution, business damage assessment and determination, bankruptcy, solvency analysis and fraudulent conveyance, reasonable officer compensation in disputes with the Internal Revenue Service, mediation, bringing arbitration, and also in litigation consulting services provided to trial counsel in preparing to depose and cross examine valuation experts.
So get the business evaluations done today!