It is very common for business owners and executives to be unaware of the true value of their company. Often, their sense of value is derived from perhaps a second-hand story about the sale of another company or a “rule of thumb” the owner overheard. Such indications of value are often unreliable. They fail to take into consideration true market conditions and the unique attributes of the company. In fact, it is common that a professionally prepared business valuation will result in a conclusion of value vastly different from the notion held by company stakeholders. Establishing an accurate value of a company is absolutely critical for purposes of business planning, especially if contemplating a future sale of the company. A current valuation will set the stage, so to speak, as to exactly where a business stands today: what is driving company value? What is detracting from it? How does the company stack up against competitors? In what areas can risk be reduced? Once identified, management can knowingly take steps toward increasing company value and maximizing shareholder wealth. If you have any questions about our valuation and advisory services and how we may serve you, please feel free to contact us.

 

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