Business Valuation

Know Your Business’ Value

Valuations have historically been done only when a business owner intends to sell the business or if required as part of a financial institution’s lending process. Jones & Company believes there are other valid reasons for a business owner to know the value of their business, well before the time to sell or transition the business to someone else.

For example, you may have an opportunity to sell or merge your business; you may want to allow a new partner to buy into your business; you may want to separate from business partners or shareholders, etc. As a result of these and other events, business valuations should, in fact, occur with a certain amount of regularity.

Avoid Costly Assumptions

Some business owners rely solely on assumptions or perceptions when valuing their business. This practice can end up being a costly one. Others understand that, over time, their business – as well as industry and economic conditions – grow, change, and progress. These factors all affect the bottom-line valuation of any business. A proper valuation takes into account the full gamut of business and industry components, as well as relevant estate planning and/or ownership transition concerns.

Business Valuation Factors

When Jones & Company performs a business valuation, we ensure critical business and estate planning issues are addressed. We examine how much cash your business generates, its expected growth, and the ROI buyers of your business would expect. We look at fair market value and use industry-specific valuation factors to assign an appropriate value to your business that results in proper legal and tax implications.

The need to have a current, professional business valuation, rather than making an assumption in terms of your business’s worth, is clear. Jones & Company is available to partner with you in the process.