The valuation of a business can rise and fall without warning and based off a multitude of factors. And while business owners have access to be able to see almost any and every part of their business, the one thing they can’t see with a quick view, is the value of their business if they were to sell.
Why is it important to know the value of my business?
While an owner may not be planning to sell or looking to create a merger, a potential partner could approach and make an offer. This could send the business owner scrambling to find a trusted broker to provide accurate valuation for any potential negotiations. Having the valuation in your back pocket allows for stronger negotiations and ultimately more freedom to maneuver the business.
And if an owner is planning to use the sale of their business as a means to retire, it could be detrimental for their future if the value hasn’t increased to a meaningful level while the owner was running the business. Planning ahead always helps.
If I get a valuation do I need to sell?
Short answer: no.
Understanding your value position will be key in planning your next moves as a business owner. Should profits increase? Should debts get paid off? Should overhead be decreased?
But you still can sell if you or the market are ready!
My head is spinning. Where do I start with this whole valuation stuff?
Right here with Proforma Partners. You are already here, so let’s get started. And getting a valuation is free, so why not?