We can’t always prepare for what life throws at us, and when life changes, your business could be impacted greatly. As a business owner, you may have considered getting a business valuation performed to help establish the worth of the business, but did you know that having one performed annually could help alleviate potential issues later? You see, having just one business valuation performed is not always accurate. Things change. Worth increases or decreases, partnerships may be added or something unplanned could happen. Here are some of the advantages of annual business valuations.
About Business Valuations
A business valuation determines the economic value of your business at a certain point in time. The reasons for performing a business valuation are many, and can include:
Marriage or divorce
Sales or mergers
Although there are many reasons why a business owner may wish to have a business valuation performed on their business, the advantages of having a current valuation are plentiful and can help in a number of different situations.
Planning for the Future
You may not always be there to run your business, and if something happens to you, it’s important to have a plan in place, so that your predecessors know how to handle your business affairs. In having a current business valuation performed, it can help with the future of your business, whether it’s a sale or dissolution of that business. You may also be planning for retirement and may be thinking of your strategy for leaving the business. Restructuring may need to happen and having an up-to-date business valuation on hand can help you design the right strategy for your departure.
Many business owners dream of expanding their business and having an annual business valuation performed can place you one step closer to achieving that goal. This is especially useful if you’re looking for financing options in order to expand. Having a current business valuation to take into the bank can help you get the necessary funds needed for expansion. Banks don’t want to see a valuation that is a few years old, because so many factors could have impacted the value of your business in that time. In order for maximum success, you’ll need a current valuation.
Getting married or divorced can vastly impact your business, so having a current business valuation can help with these sometimes unexpected or in some cases, unfortunate events. An up-to-date business valuation can come in handy during an emergency or disaster situation as well. Having a current valuation can help to establish the value of your business before and after the event occurred. So whether it’s family-related or an unplanned incident, a current value of your business will help you to get back on your feet.
Business Valuation Services
As you can see, having an annual business valuation performed on your business has obvious benefits. Enlist the help of a professional who specializes in this area of the business industry and be sure to always have a firm grasp on your business at all times. After all, your future depends on it.
The Certified Valuation Analysts at Bodine Perry are here to help. Call (855) 851-8318 or visit www.bodineperry.com to learn more about our business services.