Importance of a Business Valuation

How exactly is someone supposed to know how much their company is worth? Net gain, assets, profitability? Actually, every little aspect needs to be taken into account when assessing your business’ value. That’s where business valuations come in. These are done by professional, precise, and meticulous business veterans to get as accurate an appraisal on your business as possible.

Many business owners under-sell their businesses, sometimes by a lot; this is just throwing away cash. With a proper business valuation, this won’t happen. There are other uses for business valuations too; they help with estate planning, business planning, and divorce proceedings as well.

There are 4 major types of business valuations that we offer, based on the size of the sales in the business:

  • Express Valuation: Sales of $0-500k – This produces a valuation anywhere from 7-25 pages. It comes with a cover page that briefly outlines the purpose and conclusion.
  • General Valuation: Sales of $500k-1M – This produces about 45 pages of valuation. Generally small main-street businesses utilize this option.
  • Formal Business Valuation: Sales of $1M-5M – This is a limited scope valuation that covers income statement, balance sheet, comparable transactions, economic outlook, etc.
  • Mergers and Acquisition Valuation: Sales of $5M+ – This valuation offers a complete overview and breakdown of your business; it’s for companies with high projected growth potential.

Here at Venture Opportunities INC, we offer business valuations alongside a host of other services. For more information, please give us a call at (972) 783-1662.