As you are preparing your taxes for 2015, now may be a great time to see what your business is worth. Doing a business valuation is an important business practice. You not only need to have one done if you are considering selling your business, it is important to note the value of your business for many other reasons.
The value of a business is important to know while situations occur. Divorce or other family issues that come up bring the value of the business into play. You should know what you are dealing with before that occurs. This includes if something happens to you, the business owner. If your family needs to sell or bring in partners, they quickly know the value.
If one of your goals this year was to increase business, wouldn’t be a great idea to have a benchmark? Then next year you can have the business valuated again and see if the value increased.
If you have partners or are ever considering new partners, knowing what your business is currently worth allows for you to be more informed when talking with the partners.
As much as you might not admit it, someday you may need to exit your business. Doing a valuation now gives you a better idea as to where you stand if that someday comes sooner OR later. This Exit Strategy doesn’t always mean the sale or closing of a business, it could be included in your retirement plans.
As I mentioned before, since you are putting together your financials for 2015 for tax reasons, dig out the previous 2-3 years returns and or statements talk with your accountant about doing an informal business valuation.
The value of a business is important to know while situations occur. Divorce or other family issues that come up bring the value of the business into play. You should know what you are dealing with before that occurs. This includes if something happens to you, the business owner. If your family needs to sell or bring in partners, they quickly know the value.
If one of your goals this year was to increase business, wouldn’t be a great idea to have a benchmark? Then next year you can have the business valuated again and see if the value increased.
If you have partners or are ever considering new partners, knowing what your business is currently worth allows for you to be more informed when talking with the partners.
As much as you might not admit it, someday you may need to exit your business. Doing a valuation now gives you a better idea as to where you stand if that someday comes sooner OR later. This Exit Strategy doesn’t always mean the sale or closing of a business, it could be included in your retirement plans.
As I mentioned before, since you are putting together your financials for 2015 for tax reasons, dig out the previous 2-3 years returns and or statements talk with your accountant about doing an informal business valuation.
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