There are many reasons why you might want to place a value on your business. Perhaps you’re thinking about taking on a partner who will buy into the business. Before that can happen, you both need to know what the business is worth.
And you’ll certainly need a valuation or appraisal if you want to sell the business. Other reasons you might need a valuation include divorce, spin-offs, business disputes and liquidation. Or how about this: you might simply want know.
Accurately valuing a small business, however, can be complicated. Most entrepreneurs are capable of boosting the value of their businesses by 40 percent simply by paying attention to the things that make a business valuable.
Too often, business owners brush aside valuations, believing them necessary only if they decide to sell. As a result, only about one in 20 small businesses have done a formal valuation, according to the National Association of Certified Valuation Analysts.
