Why to valuate the company before the end of the year?
Why to valuate the company before the end of the year?
As the year draws to a close, many companies focus on closing accounts, reviewing strategies, and preparing for the next financial year. However, there is one essential practice that is sometimes overlooked: the valuation of the company before the end of the year.
Valuing the company at this stage is not just a matter of routine — it is a strategic tool that can bring significant benefits.
Here are the main reasons why this practice should be considered a priority:
- Informed Decision Making
The valuation allows you to obtain a clear and up-to-date view of the company’s financial health. Based on indicators such as profitability, liquidity and capital structure, managers can make better decisions about investments, cuts or reinforcement of resources.
- Tax Planning
By knowing the value of the company and its results to date, it is possible to anticipate the tax impact and, if necessary, adjust strategies to optimize the tax burden. This may include decisions on amortizations, accruals, or profit distribution.
- Preparation for Financing or Investments
If the company plans to attract investment or resort to bank financing, a solid and recent valuation is an asset. Demonstrates transparency, organization, and in-depth knowledge of the business — qualities valued by investors and financial institutions.
- Restructuring or Sale
Even if it’s not in the immediate plans, valuing the company can be helpful in merger, acquisition, or restructuring scenarios. Having a credible estimate of the company’s value facilitates negotiations and avoids hasty decisions.
- Setting Goals for the Coming Year
Based on the results obtained, it is possible to establish realistic goals that are aligned with the company’s capacity. The valuation acts as a starting point for the strategic planning of the new year.
In short, valuing the company before the end of the year is more than a good practice — it’s a smart decision that strengthens management, improves planning, and sets the stage for a new growth cycle. In an increasingly demanding economic context, knowing the real value of the business is an essential step to ensure sustainability and competitiveness.
If you haven’t considered this assessment yet, now is the perfect time to take action.
ValuingTools offers accurate and affordable solutions so that the valuation of your company is a true competitive advantage. Talk to us and find out how to get started.
Run a free simulation of your business now to find out how much your company is worth:
