Do you know how much your business is worth? Many business owners are uncertain of the true value of their businesses and only have a vague idea of what their selling price would be. With business valuation services from Murphy Business, you’ll gain a better picture of where you stand in the market and the potential for selling your business.
Appraisals are also essential for helping business owners prepare for a variety of professional and personal events, from a merger to divorce and tax issues. When you have a current valuation of your business at hand, you can face the future with confidence and make informed business decisions. Keep reading to learn more about understanding the value of your business through professional business valuation services.
When Are Business Valuations Necessary?
Maintaining an up-to-date business valuation report is not unlike having a resume ready to go in case an unexpected opportunity or unfortunate event comes your way. After all, the unexpected does happen. So you can protect your business and your assets, it’s important to be prepared for situations including:
- An opportunity to sell the business
- Adding a new partner or coping when a partner leaves
- Creating a plan to exit the business
- Acquiring financing
- An event in your personal life, such as divorce, death, or disability
- A natural disaster that affects your business
- Disputes with shareholders
- Liquidation
- Litigation and legal disputes
Understanding the Business Valuation Process
Much like an appraisal for a home sale, the process of business valuation requires an appraiser to analyze the value of assets within the business, depreciation that has occurred, and other important factors that could affect what the business is worth.
The appraiser will also take intangible assets into account during the valuation process. Intangible assets, such as trademarks, patents, copyrights, licenses, customer relationships, and technologies, are often very difficult for business owners to assess on their own. However, they can have a significant value potential that should not be overlooked.
Types of Valuation Reports
Because businesses can be valued in different ways based on the circumstances of the valuation and the information that being sought, there are a range of different business valuation services to choose from. Here are some of the most common options:
- Business Valuation Report: Provides an abbreviated but formal summary for the determination of a selling price or facilitation of a buy-sell agreement.
- Calculation of Value Report: Offers a calculated value in line with the standards put forth by the National Association of Certified Valuators and Analysts and the Institute of Business Appraisers.
- Business Appraisal Report: Presents a step-by-step explanation of the valuation process for use in litigation and for tax purposes.
- Broker’s Opinion of Value™: Used by buyers, sellers, and brokers for the pricing of small businesses.
Preparing for a Business Valuation
Certain types of valuation processes will require certain documents. However, you’ll likely need to gather the following for the appraiser no matter which type of business valuation report you’ve requested:
- A company history or description
- Governing documents
- Employee information, such as benefits and pay
- Financial statements
- Tax returns for the previous 3-5 years
- Details about company assets
- Paperwork for legal issues or current litigation
Why Choose Business Valuation Services from Murphy Business?
At Murphy Business, we understand how important it is for business valuations to be thorough and accurate. Our business valuation services are conducted by professional appraisers with expert knowledge in all aspects of the business valuation process, as well as related business transfer procedures.
We work to stay on the cutting edge of developments in the field of valuation and appraisal, taking part in teleconferences and annual conferences whenever possible. We also perform our valuations according to the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in addition to the Business Appraisal Standards of the Institute of Business Appraisers. You can have peace of mind that we work according to proven peer-reviewed valuation methods that provide an accurate understanding of the value of your business.
Don’t wait to have the value of your business assessed by a professional appraiser. Contact Murphy Business today at (888) 561-3243 to hear more about our business valuation services.