Business Broker 92124 – Why Every Business Owner Needs a Business Valuation

The question that almost every business owner asks is this; why do I need to know the value of my business today if I don’t plan on selling it soon? If you are one of those business owners, this article is for you. In this post, we will look at why you need a business valuation and why you should leave the valuation to an experienced business broker 92124 trusts. Let’s get started.

The main reason you need a comprehensive business valuation is to get essential information that you can use to guide future strategic planning. Studies show that an average privately held business changes hands every 7 to 10 years. Whether you plan on selling your business now or 10 years from today, you need to know how much your business is really worth today. This information will help you better plan for the future.

A valuation is important because with the right business broker 92124 supervising the valuation, you will also be able to know the strengths and weaknesses of your business. The valuation report will also reveal potential opportunities you haven’t explored. This information is crucial for proper planning.

Most business owners have about 65 to 90 percent of their net worth tied to their business. This makes their business their single largest asset. This asset is a result of years of sleepless nights, sweat equity, long hours and rewarding results. You are definitely proud of what you have created. But how much value have you amassed over the years? The only way to answer this is through a business valuation.

Regardless of where you are, it is important to start asking yourself the following question early. That way you will be able to plan for an exit and prepare for the inevitable.

How much do you need to live comfortably once you retire? Is your business your retirement plan?
What will happen when you are faced with the reality of burnout?
What happens if you have health issues?
What if the market changes and you are forced to close your business?
How much do you think your business is worth?

The point here is a business valuation can help provide a basis for starting to answer the above questions. A valuation will give you a roadmap for determining the following:

The adjustments you should make to increase revenue and profitability
How to diversify your service offerings
Understand your customers and how to get more customers.
When you should hire additional staff and when to let staff go.
How to improve curb appeal
Which equipment to invest

Always assume your competition knows what their business is worth and they are doing everything in their power to improve. You can’t afford to be left in the dark. So-Cal Business Brokers has the expertise you need to get a comprehensive business valuation in Tierrasanta.

Business Broker 92124

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process