HOW TO VALUE A BUSINESS

May 19

Do you know your business’ value? According to IBIS World, 98% of business owners do not know what their business is worth. Whether you’re looking to grow your business or sell it, you should know the value of your business – knowing the value can help enhance business growth and increase success.

At GW|Business Valuations, our mission is to educate business owners on the value – and the value drivers – of their business. We use technology that enables us to provide ongoing valuation visibility with actionable data aligned with the business owner’s future vision.

At GW|Business Valuations, we offer certified valuations in three common formats, based on the client’s needs:

Calculation of Value: This is the most common type of valuation, often used for internal benchmarking, partnership agreements, pre-sale pricing or owner/personal use. The client and valuation professional will usually agree upon one valuation method and/or approach to use.

Summary of Conclusion of Value: This is used with SBA lenders, partnership agreements, buyouts, and estate planning. T valuation professional and will determine the best approach and up to two valuation methods to be utilized for the conclusion of value. The final report will include industry, market and economic data.

Detailed Conclusion of Value: This is a more in-depth version of the Summary of Conclusion of Value; it includes regional, state, and national economic statistics, along with detailed industry and market data comparisons. It is usually used during disputes, litigation, divorces, and IRS matters, and up to four valuation methods can be included.

LOOKING TO FIND YOUR BUSINESSES’ VALUE?

Learning the value of your business can optimize your business – and our team knows how to make that happen. If you are a business owner with annual revenues under $20 million, we can help provide you the necessary information to learn the true value of your business any time you want it. Through the latest technology and special tools, we can provide you with quality, detailed valuation reports for now and as a guide for the future.

We educate/inform business owners on the factors that impact value in all methods that we utilize. We are a licensed advisor firm for the ValueBuilder suite of products. The ValueBuilder score is an assessment tool that allows you to see your company as a buyer would see it. Your completed business valuation will also include a ValueBuilder report that details the non-financial strengths and opportunities in the business. The ValueBuilder System™ (VBS) is designed to improve your Value Builder Score – and with it, the value of your business. It measures how sellable your business is and how likely it is to attract buyers when you decide to sell.