Every smart business person knows the importance of being able to present a fair and accurate accounting of his businesses' value. It is particularly important when attempting to sell a business. This valuation document is the single most useful piece of financial information about any business. It has many purposes and can be used to:
• Prove the Fair Market Value of your business
• Provide Information to lending institutions for a business loan
• Validate information for a Merger, Acquisition or Stock Offering
• Create a succession plan or a trust
• Develop an estate plan or tax plan to protect wealth
• To determine the value of assets and liabilities
• For the creation of an Employee Stock Ownership Plan (ESOP)
To know why it's so important to have a valuation you must understand that the book value reflected on the financial statements of a business usually differs vastly from its true market value.
Without a new valuation, a business owner must be prepared to defend his opinion of value. For instance, any potential buyer will place little credibility in a value arrived at by an owners accountant. Therefore, a properly prepared valuation report by a valuation expert would become the best tool usable to obtain maximum selling price.
United Country-Property Events has established relationships in place with accredited firms whose valuations are accepted by 95% of all SBA lenders in the country. Using a third party valuation makes the purchase price a small part of the negotiations and puts the emphasis on agreements to other terms & conditions of the transaction.