Your business is the focus of your professional life, as you work to help it grow.
As you reach various milestones in the life of your business, it can be important to determine how much your business is worth.
This type of valuation can be critical for the potential sale of your business or as part of a strategy to draw investors to provide capital for your next expansion. If you overestimate the value, it could make the process of selling or bringing on investors more difficult. Underestimate it, and you could be cheating yourself out of equity that you have earned.
A business evaluation is not written in stone but is a snapshot of the economic value of your company at a particular point in time. During a divorce, for instance, the valuation can be key in determining what, if any, part of the business is owed to each spouse. There are a multitude of situations where the value of your business is critical, including disputes of shareholders, disputes between partners, for estate planning or tax purposes, and claims of potential economic damage.
As a Business Valuation specialist, we bring unique expertise to your Business Valuation issues.
A quality accountant can provide a business valuation based on objective measures while evaluating the various aspects of the company.
As part of the process, one can look at the company’s prospect future earnings and the market value of its current assets. Common approaches to determine a valuation include reviewing financial statements, cash flow models, and a comparison based on similar companies within the industry.
Various methods can be employed, including market capitalization, times revenue method, earnings multiplier, and its liquidation value. There are a variety of other methods, including determining the replacement value and breakup value of your business.
To create a viable and accurate business evaluation requires experience, judgment, and an understanding of what information is relevant and what is not. Our team at James P. Richardson CPA can provide that judgment and knowledge built through years of experience. No matter your industry, our staff can work with you and provide a business valuation to address your needs.
Some of the Industries where we can provide Business Valuation
Our services are available for transactions, corporate management, disputes, and more.
We use accounting industry best practices and methods consistently used by business valuation experts. Our reports are supported and communicated by the audience or the proposed use of the information.
Here are just a few of the industries we can provide our services, but options are not limited to these areas:
- Food vendors or restaurants
- Financial Services
- Construction or handy-man services
- Investment companies
- Real estate development
- Professional services or professional development
- and More…
At James P. Richardson CPA, our knowledgeable staff can walk you through a business valuation that provides the information to fit your needs.
Doing so, you can make an informed decision regarding the sale of your business or your insurance needs to cover for potential losses. If you are looking to buy out a partner or be bought out, a business evaluation can help in coming to a fair price as part of your sales agreement.
If you have questions about the value of your business, we can help. Trust our experienced team to provide a complete report of all the critical aspects of your business valuation.