Valuing a Company

Chris Blees President & CEO Send Email View Full Bio

Austin Buckett Manager Send Email View Full Bio

Do you know the value of your company?  Studies indicate that 65 percent of business owners do not know the true value of their company, yet on average, this represents 75 percent of the business owners’ personal wealth. 

While knowing the value of your company might not seem essential to day-to-day operations, it can provide you with significant insight in how your company plays into your overall investment strategy. 

Typically valuations are performed for one of three primary reasons:

1. Taxation
2. Transactions
3. Disputes

However, given the size of a closely held business to an owner’s overall personal wealth, it is important to consider the valuation of a business the forth primary reason, planning.  Done right, a valuation performed for planning purposes will enable the company and the business owner to benefit from the following:

• Knowing the elements of the company that will drive its value to a potential buyer (Value Drivers)
• Monitor the progress of the Value Drivers to maximize value
• Understand the current value of the business if it were sold
• Tie the value of the business into an overall personal financial plan
• Understand “Your Number”, what you can retire on and how and when your company will enable you to achieve it

At BiggsKofford, most of our valuation work is for planning purposes, and as a result, we perform a lot of in-house research, as well as having access to a wealth of resources that provide us with current market trends and specific industry data.

If you could like to discuss business valuations in more detail, please contact us to discuss how we can provide you with a customized valuation approach that would most suit your needs.

Helpful links:

Alliance of Mergers & Acquisition Advisors