When should I do a company valuation?

Quando devo fazer uma avaliação da empresa
Blog / Financial Literacy

When should I do a company valuation?

A business valuation is essential because it determines the market value of your company using educated principles. The value of your business can change over time, so it’s crucial to get a valuation on an annual basis.

Here are NINE common scenarios you should avoid unless you have a current and objective business assessment.

1. Opening a new business: Before opening a business, you must request the creation of a business plan together with an evaluation of the same in order to obtain the necessary capital to start it up.</p >

2. Receive a purchase offer: If a buyer is interested in acquiring your business, they must be aware of the value of your company before accepting any offer. A professional appraisal will ensure you get the right price.

3. Acquire another business: Before making an acquisition, it is essential to understand the value of the target company. An independent assessment of your target company will help you make an informed decision.

4. Raising capital: If you are raising money from investors, it is essential to know the value of your business before raising funds. Knowing the value of your business will help you determine how much of your company you will give in exchange for the capital raised.

5. Succession planning: If you are planning to pass the business on to family members or other successors, knowing the value of your company is essential. A business valuation will help you accurately determine the value of the company and make informed decisions about your succession plan.

6. Reorganize ownership: When business owners decide to reorganize the business, it is essential to understand its value before making any changes.

7. Selling a business: Before putting your business on the market, obtaining an independent valuation of the company is crucial. This will help you price the company appropriately and avoid any potential mispricing.

8. Litigation: If your business is involved in legal proceedings, it is essential to understand its value before entering into any negotiations. A solid valuation will help you determine the value of your business before taking action.

9. Divorce Agreement: If you are going through a divorce, it is essential to have a divorce agreement independent of the business valuation to ensure that any agreement is fair and equitable.

Conclusion:

Having a reliable and accurate business valuation is essential for any company. If you are looking to make an informed decision, it is crucial to have a current assessment of your business. Whether you are opening a new business, receiving a purchase offer or planning succession, an independent valuation is essential to understanding the true value of your business.

You can make sound decisions that will help your business grow and succeed by having an objective assessment of the business. So when in doubt: get a professional valuation of the business. It will be worth the investment.

Carry out a free simulation of your business now to find out how much your company is worth: