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During the life of your business, situations may arise where you will need to know the exact value of your business via an official business appraisal. Hiring an experienced and savvy appraiser is one of the simplest and most cost-effective methods of attaining a true business value. Find out when appraisals are an absolute must in 2022 in this blog!

Selling/Ownership Transfer

Selling a business outright is the most common situation where an appraisal is needed. Any prospective buyer is going to want the full picture of your business’s finances and assets, making an appraisal a necessity. An appraisal is going to help both you and the buyer during negotiations. The buyer will know they aren’t paying too much, and you know you will not be getting underpaid for your business. 

Maybe you are getting up there in age and want to pass the business on to the next generation. Similar to selling the business, you will need an appraisal so you can give your successor the best idea of how to take the business forward. The last thing you want is your business floundering under new ownership. Set up your successor with all of the info they need about the value of the business with a proper appraisal by an experienced appraiser.

Estate Settlement

In the unfortunate event that an owner or senior board member passes away, there will be a transition in ownership. There may be multiple heirs or possible buyers who seek to inherit this new opening, and in that case, an appraisal is an absolute must. Each possible hire will have their own goals and ideas for the business, but the odds are that not all of these ideas are plausible. An appraisal is the best way to make an informed decision about who has the best chance for success should they be the one taking over the business. 

Other Reasons

If you plan to take your business public in the form of an IPO, you are going to have to set a share price. An appraiser can help you with this, and once you give them a good valuation they can compare your business to a similar public one and give you a good share price for the IPO. 

Maybe you are planning to merge with another company, they will need to see how much your business is worth so they can decide whether to go through with the merger. An appraiser is going to come in and tally up all of your assets and other items of value so you have all the info you need to get the merger completed.

We’re Here to Help!

Looking to become a business owner in 2022? At Murphy Business, we understand how overwhelming and complicated buying or selling a business can seem. Finding the right business to buy or the right buyer to sell to is a lot of work. That’s where we come in. Our experienced team will help you find the right buyer for your business or the right business for your buck!

Contact us for more information and connect with an expert today!