| As the top business valuation experts convene to discuss emerging issues including a company’s fair value, and new regulations governing business, it is clear that many executives still don’t know as much as they could about the field of business valuation.
The American Society of Appraisers (ASA), among the founding members of the field of business valuation, recommends that every company have a current business valuation.
The following are the top reasons that companies benefit from having a business valuation.
Know what your company is worth. Many business owners have no idea what their business is worth; and if they think they know, they are probably wrong. Sentiment often gets in the way of good judgment. For a fair and independent opinion, CEOs and owners should obtain a professional business valuation.
Understand where your company fits in the landscape. A business valuation will research and provide an explanation of your specific industry and will place your company in the competitive landscape of your specialized market. It will also tell you the market price of publicly traded companies that are engaged in your line of business.
Learn the financial condition of your company. Business owners may think they understand the financial health of their company, however having an independent review and analysis including intangible assets can confirm or deny the theories.
Make fast decisions on buying, selling, and mergers. If you are faced with the option to buy, sell, or attract capital for your business, you may not have time to wait to have a business valuation completed. Having a current valuation will enable you to strike while the iron is hot.
Stay current. The market is in constant flux. It is important to get regular business valuations because your company, your industry and the economy are continually changing. A business valuation report may be appropriate for use in courts, for financing and for tax challenges as well.
To find a business valuation expert, visit www.appraisers.org. | 