In all the unknowns, the value of your business is a discoverable fact.
If you are like most small business owners, you find it difficult to plan because your future has more unknowns than your non-business-owning counterparts. You might not know how much your business is worth, when you should sell, where to find the right buyer, how to fetch the best price, or even how much insurance to carry. If you have a family business or operate with a partner, you also have additional layers of both complexity and ambiguity.
When planning for the future, it is easy to become overwhelmed by all that isn’t known. When you step back and evaluate the questions marks that dot the path to your future, however, you might realize that not everything is unknown.
The value of your business is a prime example of a discoverable fact, yet if you are like 98% of the other small businesses in this country, you don’t know the answer.
Ninety-eight percent of business owners don’t know the value of their business. You can’t increase and optimize the value of your business without knowing where you are today.
Better understand your business and its potential.
Know the value of your largest asset so you can plan for retirement.
Ensure the business and your family are properly protected.
Create a succession plan.
Pay the right amount when you buy a business.
Get what your business is worth when it is time to sell.
Create Buy/Sell Agreements with business partners.
Explore funding opportunities.
Establish a trust or create an estate plan.
Prepare for taxable events such as gifting or grants
Eighty-two percent of all businesses owners that knew their value at least 18 months before their sale, increased their sale price by at least 14%
With less than a half an hour of your time and innovative technology that harnesses the power of big data, you can get an accurate business valuation to illuminate your path to a successful transition. The valuation will give you an understanding of how much your business is worth, how it compares to others in your industry, and the levers that could drive future growth.
According to a Financial Planning Association/CNBC study, over 70% of small business owners have the majority of their wealth tied up in business assets. Knowledge of how much yours is worth brings clarity and insight into retirement and estate planning discussions, succession planning and exit strategies, and insurance protection decisions.
As Lieutenant General and former Deputy Director of the CIA, Vernon Walters, once said, “Uncertainty is the most chilling thing of all.” To reduce the amount of ambiguity you face by determining the value of your largest asset, consider obtaining a business valuation today.
Learn more about how we work with business owners here. Or, give us a call and we can get started on your business valuation!