Business valuations, or a professional assessment of the financial worth of your business, are necessary in more situations than many business owners realize. In most situations, it is smartest to have a professional third party, such as a broker, assess the value of your business to prevent disagreements from arising among the parties invested in the business’s value.
One obvious example of a situation in which a business valuation is necessary is when your business is being bought or sold. Too often, business owners attempt to assess the worth of their business based on their own experience, but it is usually necessary to have a professional with no stake in the business perform the valuation to assure that a fair and unbiased estimate is made.
Divorce is another situation in which an industry professional should be summoned to perform a business valuation. It is an unfortunate reality, but often, this is the only way to acquire a fair estimate for the business’s worth to help with splitting assets for the couple’s separation.
For more situations in which you should seek a professional valuation for your business, visit the Tenney Group’s website at thetenneygroup.com.