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Sep 2015

Before You Pass The Torch, Know What Your Business Is Worth

Business Wise Business Valuation, Succession Planning 0 Comments

Small-business owners invest blood, sweat and tears — not to mention time and money — into their companies. Putting a price tag on all that work may seem impossible. But in fact getting an accurate business valuation is essential to planning for your future, whether that means a succession plan, sale of your business or even your own retirement.

The benefits of regularly undertaking a Business Valuation are many, but some key considerations are:

  • A business valuation estimates the economic value of your interest in a business. It is usually used to determine the selling price, the amount needed to fund a buy-sell agreement, or to assign values to individual assets.
  • Your business is probably your most valuable asset and will be an integral part of your retirement plan. It is critical to know how much of your business’ value will be available when you retire.
  • If something unexpected happens to you or your business partner, it could burden your family with tax liabilities for your business. Getting a clear picture of the value of your business can help you prepare your estate plan and tax obligations. You may seek the services of an estate planning attorney to assist you in creating a proper estate plan.

Even though your business means the world to you, you also need to understand how the rest of the world perceives its value. It could make or break your plans for the future!

Why not give us a call to discuss your succession planning and business valuation needs.

Business Wise
The team at Business Wise don't just do bookkeeping and accounting - we believe that successful businesses are those that are informed, proactive and open to change, and we want to help you on your journey to success.