Not having a dollar value on your business is risky, and can lead to substantial problems in the future.
In an article from Forbes, author Kris Garlewicz writes, “Many different factors determine overall business value including assets, reach and sales potential. It can be very easy to over- or under-value a business without the right tools”.
In the article, Garlewicz discusses:
- Calculating valuation by assets
- Asset-liquidation value
- Market valuation approach
- Income based valuation
- Using a business valuation
Garlewicz continues, “Valuations are also important tools for the unexpected. The loss of a business partner, shareholder disputes, partnership troubles and change of corporate structure are unplanned events that affect a business. Prepare with a comprehensive annual business valuation. Take a step back, look at all the moving parts, and make informed business decisions”. When was the last time your prepared a proper business valuation?
To read more, see the full article from Kris Garlewicz in Forbes.