Mature BusinessMONEY

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  • Evaluating Your Company’s Market Value
    Game Plan

    Determining Your Company’s Value

    Business valuations are typically determined by an accountant, a lawyer specializing in business transitions, an investment banker, or a professional business appraiser. Using a professional should ensure a smoother transaction—and fewer surprises.

    There are several methods to determine an accurate valuation of a business. Business appraisers often say that their work is just as much an art as it is a science. Still, the accuracy of their results rests squarely on the reliability of the financial information they have to work with.

    Factors that play into these assessments include:

    • The state of the economy
    • The growth prospects of your industry
    • Your company’s outstanding obligations and/or its need for capital expenditures to stay competitive
    • Whether or not you have a pressing need to sell