THE VALUE IN UNDERGOING A BUSINESS VALUATION
Business owners most frequently ask us, “How much is my business worth?” What we help with is more sophisticated than just determining your company’s total value – we also determine how much overall worth you will need to capture from the business to retire.
Once a valuation is performed, the Sikich advisors and tax planners will develop the Net Proceeds Analysis. This detailed model considers the net proceeds that business owners should expect to receive and how best to reduce the tax impact. Additionally, the model will project the timing of payments.
From an owner’s perspective, the most important items that stem from a valuation are: the things in your business that you need to keep an eye on, what valuing a business means to you, and what do you net out in your proceeds – meaning, what cash you walk away with.
What to Expect
As a general rule, most business owners think their business is worth more than it is. Sikich advisors help you see your business from a buyer’s point of view. In addition to performing a comprehensive business valuation with explanation, we also offer suggestions for positioning your company for greater value realization.
Defining Your Goals
If you received an offer today, would you be ready to accept it? Our first meeting is a process of discovery – we will gather information about your personal goals and perform a business valuation of your company as it stands today.
Purposes of a Valuation
Valuations are useful in other areas besides transactional purposes, such as: tax reporting purposes (estate and gift tax planning, charitable donations, and corporate entity conversion); litigation actions such as marital dissolution, shareholder disputes, economic damages, and fraud; and, to understand your company’s value and how to enhance it over time.
Evaluation
We evaluate all areas to grow the value of your company: personal factors, business operations, industry/market factors, legal/regulatory demands, financial details and economic situation. In addition to providing you with a number for what your business is worth in today’s market, Sikich advisors will look at areas for value enhancement, preparing your company for transition.
FOUNDATIONAL ITEMS NEEDED TO BEGIN THE VALUATION PROCESS TYPICALLY INCLUDE:
oundational items needed to begin the valuation process:
- The profit and loss statement, balance sheets for the last five years, corporate tax returns for the last five years, and the balance sheet for the current year.
- Copies of current year forecasts and projections.
- Information about the company’s products/services.
- A list of assets, including inventory and any liabilities.
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