Business Value

Watch the Value of your Business

When you have made the decision to exit from your business, the question of what it is worth will come up. If you are selling, it is necessary to arrive at a value in order to set a price that will be considered by a potential buyer. If you receive an offer for your business from another party, then a valuation is necessary to confirm whether the offer received is good.

 If you want to pass the business on to family members, the net worth has to be calculated in order to ensure fairness to other family members. It is also required in order to put in place the money that needs to be passed back from the family member taking over.

If you experience marriage problems (e.g. divorce) the business needs to be valued to determine the share belonging to each party. If your business is expanding and requires extra capital, a new valuation must be obtained for the potential lenders. The value of your business is the value of the long-term investment you have put into it, of time, money and hard work.

A consideration when calculating the net worth of the busine...

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