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05 Feb 2018
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Why You Should Get Your Business Valuated?

There are many reasons why a business owner or individual may need to know the value of a business. The typical standard of value utilized is called fair market value. The fair market value standard consists of an independent buyer and seller having the requisite knowledge and facts, not under any undue influence or stressors and having access to all of the information to make an informed decision.  The following is a list of points that should urge you to get your business valuated.

 

• To evaluate an offer and to negotiate a strategic sale of the business. 
• To plan an exit strategy
• To understand the worth of your business
• To determine the annual per share ESOP (Employee Stock Ownership Plan)
• Setting the base value for your business and to develop the strategy to improve profit and increase the value of your business for an exit strategy
• For shareholder or partnership disputes
• For buy-sell purposes and funding said agreement
• For shareholder or partnership buyouts or investments
• To value a portfolio (patents, trademarks, copyrights etc.) 
• Justifying the per share equity value for annual shareholder meetings
• Identifying weaknesses in the business
• Valuing the business for business bankruptcy 
• Determine the asset value in a marital dissolution act
• Estate tax reporting
• For gift tax planning purposes (transferring an interest to family members, donation to charity etc.) 
• To value stock options
• To obtain further investments from the bank or other sources
• To determine the IP value of the business
• To identify if the business is growing, maintaining or declining in value to restructure the business.

 

These are just several reasons why a business owner should be getting their business valuated. When you decide it is time, make sure you give the team at DRDA a call. Their friendly team will handle your case with the utmost care, respect and professionalism, along with being diligent and giving you the best report possible

 

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