Entrepreneurs who seek to exit, or sell off, businesses have to know
the importance of business valuation. As David M. Daggett, CPA has seen
in his business career, establishing a good value of a company isn’t an
easy process, but it is crucial if the entrepreneur is to achieve a fair
assessment of their hard work.
The truth is, many entrepreneurs don't have a realistic idea of how much their businesses are worth. It's not surprising, though since many people invariably value things they own at a higher value than things that aren't theirs. This means that you can have a different value in mind than your business partner(s), potential buyers, or family successors. In some cases, the difference in expectations can lead to conflict.
Because of the complexity involved in valuing a business, it is always best to have a professional valuator help to set the selling price and determine which offers are reasonable. A professional who knows about tax is also better placed to advise on the various approaches that can be employed to assess the tax liability involved in the sale of the business.
The opinion of a qualified external evaluator can hold more weight with potential investors/buyers than numbers calculated in-house. The process of valuation also helps you to identify the weak spots in the business and find ways to get maximum value out of your hard work.
In addition to working as a CPA, David M. Daggett is also a Certified Valuation Analyst and has successfully been involved in the sale and purchase of over 150 companies during his career.
The truth is, many entrepreneurs don't have a realistic idea of how much their businesses are worth. It's not surprising, though since many people invariably value things they own at a higher value than things that aren't theirs. This means that you can have a different value in mind than your business partner(s), potential buyers, or family successors. In some cases, the difference in expectations can lead to conflict.
Because of the complexity involved in valuing a business, it is always best to have a professional valuator help to set the selling price and determine which offers are reasonable. A professional who knows about tax is also better placed to advise on the various approaches that can be employed to assess the tax liability involved in the sale of the business.
The opinion of a qualified external evaluator can hold more weight with potential investors/buyers than numbers calculated in-house. The process of valuation also helps you to identify the weak spots in the business and find ways to get maximum value out of your hard work.
In addition to working as a CPA, David M. Daggett is also a Certified Valuation Analyst and has successfully been involved in the sale and purchase of over 150 companies during his career.
