The benefits of company valuation services include providing insight into a company's resale value, facilitating access to more investors, and helping to determine its true value.
FREMONT, CA: While understanding the value of businesses is beneficial at any time, specific situations may require professional advice. A valuation is especially useful in the following situations:
• Business sale or merger
• For estate tax purposes
• Calculating capital gains
• Partner or shareholder onboarding
• Cases of marital dissolution
• Business transfer under a buy-sell agreement
• Capital raising
• Transfer of interest by gift
• As part of succession planning, business shares can be gifted.
• Creating or updating an employee stock ownership plan (ESOP).
The following are some of the significant benefits of business valuation:
A valuation provides an accurate picture of a company's assets: The owner of a business cannot make informed decisions or set appropriate goals simply by estimating business assets. By understanding company assets, company owners can receive accurate insurance coverage and negotiate effectively with potential buyers.
Investors have broad access to valuation: When investors approach a business for investment, they often expect a full valuation report. Organizations must receive a complete business valuation now if they foresee extreme growth or severe draughts in the future.
A company's resale value is revealed by a valuation: The resale value of the company should be understood long before it is put on the market, whether shareholders plan to sell it in two, five, or ten years. If companies understand the value of their business, including strengths and weaknesses, before selling, they can increase its worth, increase valuation and achieve a higher listing price when it comes time to sell.
By using the insights gained from the valuation, organizations can boost profits, invest, improve processes, lower expenses, and increase sales.
Mergers and acquisitions are better understood through valuation: Mergers and acquisitions often involve knowledge as a negotiating tool. When a prospective buyer approaches the company, the shareholders should be able to present an accurate picture of company value, asset holdings, and past and future growth. Purchasing parties may acquire a business for less than its true value without accurate insight into business value.
By evaluating a business, organizations can make informed decisions, such as negotiating for a fair deal or rejecting an undervalued offer.
An accurate valuation reveals the value of a company: For a business owner, understanding immediate company value is more valuable than relying on market data to estimate business value. It is also important to evaluate valuation growth over time. Companies with consistent growth and potential for future success are often sought after by investors and potential buyers.
