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Just Elementary, Inc. » Business Valuation » How You Benefit from a Small Business Valuation

How You Benefit from a Small Business Valuation

It is a simple question:

Why should I get a valuation for my business, especially if I am not planning on selling business anytime soon?

As business intermediaries, we can tell you why.

Reason #1 to Get a Broker’s Opinion of Value: Checkup for your business

One good reason to get a Broker Opinion of Value (BOV) from an experienced business broker is to help you find out where you are losing value in your business.

In our experience, we have seen it all (almost).  We can especially do an apples to apples comparison, because we have intimately seen multiple businesses in the same industry.  This has allowed us to observe in action key factors in which some business run better volume, more profitably, and more efficiently than others in the exact same industry and market.

As you guessed, it all starts at the top, which would be with you as the owner.  It is the owner or partners that are responsible for the level of success a business enjoys.  The foregoing explains reason #1 a business owner should get a Broker Opinion of Value from an experienced business intermediary (broker) professional, which is a business intermediary can assess and analyze the entire operation to give cogent feedback on what works well and which areas of a business need improvement.

Reason #2 to Get a Broker’s Opinion of Value: Reality Check

Reason #2 is paying for a reality check.   While many valuation firms can do remote and discount appraisals based solely on the books of the business, a business intermediary can give you the practical figure if you are forced to sell in ‘arms length’ transaction.  Because buyers buy more than books, they buy your physical property, the equipment and facility setup.  A hands on business intermediary broker can give you an honest assessment of the visual appeal of your business.  Often, CPAs and valuation only firms will give you inflated numbers for a host of reasons, most times unintentionally.  If you get sick, disabled, lose your desire for the business, or just plain retire, the only number that will matter is the practical expected sales price that only a practicing experienced business intermediary can give.

Click here to learn about Just Elementary’s Broker Opinion of Value Service.  To reach us by phone, contact Sonia Chhabra, our Client Care Manager at (888) 926-9193.  By email cs@justelementary.com

     

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