What are Business Valuations and why are they important?

Business ValuationsAll businesses have a value. Whether it be a multi million dollar corporation that spans entire countries and language barriers. Or a small one man hot dog stand. All companies have a value. The value of a company is based on two main factors. Firstly turnover, or in other words how much money the company makes per year. The second main factor is assets. If the company owns property or vehicles then it is calculated into the overall value of the company. But not just that, even things like equipment or intellectual property (think of all the IP that Disney owns for instance). It all adds up. If you need a business valuation in the Bay Area. Then you need to know a few things first.

Three Big Questions About Business Valuation:

1: Why Do I Need a Business Valuation?

If you own a business in the Bay Area and you are looking to sell it then you need an accurate valuation. If you don’t know what your business is worth then how do you propose to sell it?
By having a business valuation for your Bay Area company, you are assured that you will get a fair price for your business.

2: Why Can’t I Do a Business Valuation Myself?

It is possible to put a valuation on your Bay Area business yourself. But chances are if you own your own company, then you have attained a certain emotional attachment. While this can keep you in good steed during the lean years, it can hinder you otherwise. By having a Bay Area accountant value your business objectively, you will see clearly what it is worth. And not what you think it is worth.

3: What If I’m Not Selling My Business?

Selling your Bay Area business is not the only reason to get a valuation. For instance if you need to acquire a loan at some point in the near future. Your bank will always ask about turnover and assets within the company books. It is one thing to hand them a bunch of papers and hope for the best. It’s a very different thing handing them official papers from a Bay Area accountant. They will instinctively be able to read the valuation and know at the drop of a hat, what they could loan you. And what assets you have to loan against.

So as you can see. Your business is your lifeblood, and having the true value of that lifeblood can help you in more ways than one. If you live in the Bay Area and need a business valuation then look no further than http://www.boyerconniff.com. We can put an accurate value on your company and give you peace of mind moving forward. Whether it be selling or growing your business.

 

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