What Is The Need For Creating A Small Business Valuation?

Catering caterer Texas Small Business ValuationIf you haven’t had an assessment for your business in the last 2 years, it’s high time you get one done as soon as possible. A well-founded valuation presents the business owner with many real facts and figures. It helps them determine the actual value or worth of their business in terms of market competitiveness, asset, and income values. Getting a complete small business appraisal in Arlington, TX, prepared biannually assists in tracking a company’s growth over time.

Reasons to Determine the Value Of A Small Business

Small business owners invest a significant amount of their money directly into their businesses and is often their biggest asset. In fact, it is often their biggest investment for retirement. A Texas business valuation can help unlock the business’ potential if quantified using the right approaches. Below, we outline the many perks of determining a small business’ value.

  1. Ascertains The Sale Value

Most small businesses or entrepreneurs think of ultimately selling their business as the final goal. Thus, a continuous valuation of the business over the years gives a realistic assessment of progress and what changes are need to continue growth in value.  Simply keeping expenditures in check and increasing profits does not necessarily maximize business valuation. A timely small business appraisal minimizes false impressions and determines the best exit roadmap for its owners.

  1. Facilitating Partner Ownership Changes

The ownership of a business may change with prospective partners wanting to buy in or an existing partner wishing to exit. In such cases, the sound calculation of your business valuation is of utmost importance. Additionally, potential for a merger or acquisition may also require a business valuation.

  1. Assists In Estate Planning

Small or big businesses must have a fair assessment of their assets as part of the input to develop a realistic retirement plan. If your business is part of your estate, it is crucial to have a plan in place for the future and develop a strategy to execute it based on the valuation. A sound valuation helps family members and loved ones to ascertain the value of the assets and receive a fair share.

  1. Access to More Investors

If you want to grow your business, you may want investors for your company or investment funds from other sources. In such cases, chances are than the investors will want to see a complete valuation report. Therefore, to increase the possibility of an investment, you must provide them with a valuation projection based on the expected funding. It provides the investors with an overview of the return on investment.

“Extremely knowledgeable and Professional! Very Responsive as well. Excited to work with them again!”

Will Benoit, Zion Home & Building LLC

  1. Creates Mutual Ground In Situations Of Divorce Or Bankruptcy

Businesses are vulnerable to unanticipated situations like divorce or bankruptcy. Couples who are also business partners often fail to come to mutual grounds while filing for a divorce. In such situations, having a small business valuation assists in a fair and equitable distribution of assets or creates a preliminary base for an immediate buyout.

Determine The Correct Value Of Your Assets!

adamnobleSmall businesses can take advantage of the valuation to determine their future growth and profit. Adam Noble Group, LLC specializes in providing ownership transfers and business valuations of privately owned companies. We work with sectors of multiple interests and provide intermediary services of all kinds, from small business appraisal, valuation, to mergers to acquisitions. Contact us today to learn more about small business valuations and appraisals.

Do you Need a Business Valuation by an Experienced Industry Specialist?

We have professional, industrial experience and expertise in many specific fields, including these:

Oilfield Services Businesses

Craft Breweries and Brewpubs

Gutter and Drainage Construction Businesses

Screen Printing, Sign, Embroidery and Customization Businesses

Construction Trade Businesses

Retail Shipping Businesses

Buying Out your Business Partner

Patented Product Companies

Manufacturing Businesses