How much is my business worth?
If you have asked yourself this question, a professional business valuation would provide you that information and more. Unfortunately, the stark reality is that a business is rarely worth as much as the owner thinks it is worth and generally worth more than what the buyer thinks it is worth.
Selling your business is not the only reason to have a valuation done. There are many other reasons why you need to know what your business is worth, including:
- Gifting
- Selling your business
- Buying a business
- Life Insurance needs for a buy/sell agreement
- Marital Disputes
- Estate Taxes
- Inheritance Taxes
- Bankruptcy
- Impaired Intangible Assets
- Insurance Claims and lost revenue
- Employee Stock Options
A proper business valuation is done under professional standards established by the American Institute of Certified Public Accountants (AICPA), the National Association of Certified Valuation Analysts (NACVA) or the American Society of Appraisers (ASA).
Business valuation is both an art and a science. The science of the business valuation rests with its compliance with professional standards and the proscribed methodologies used to arrive at the final value of opinion.
Because a business valuation is largely an opinion based upon data and more importantly the interpretation of the data, business valuation becomes an art form and is reliant upon the business knowledge and savvy of the valuators/appraiser. This is the art form.
At Myers, Patsy & Associates, we sat on the other side of the table for over 15 years, in your seat. We understand how business works and how inventory, employees and various economic conditions impact your business, because we have seen it firsthand – we have lived the businessperson life, not just read about it in a textbook.
At Myers, Patsy & Associates we bring real world experience into the valuation equation. We approach each valuation from a practical, no nonsense perspective which results in a fair appraisal of your business. We do not use a cookie cutter approach to valuation; we consider all of the data, and the economic conditions, to arrive at a realistic and meaningful value.
The goal, after all, is to get a meaningful number so you can make a decision – buy, sell, gift…