An accurate business valuation is critical to not only the M&A process, but to business ownership itself.  A business owner needs a specialist in the field of business valuation to properly perform and examine in this capacity.

There are a plethora of reasons for obtaining a Business Valuation:

• Buyer
• Seller
• Sale
• Merger
• Acquisition
• Partnership or Shareholder Buyout
• Buy-Sell and Shareholder Agreement
• Marital Dissolution
• Commercial Litigation
• Corporate Restructuring
• Estate & Gift Tax
• Shareholder Disputes and Litigation
• Financing
• Financial and Tax Reporting

However, the most ignored reason to obtain a business valuation is for...Personal Wealth and Financial Management.

A business owner should obtain a new business valuation every 3-5 years regardless of how standard and static business operations have become.  More often than not, a business owner can describe their stock portfolio value on a day-to-day basis.  However, rarely can that owner identify the value of their most valuable asset which is typically their business. 

Through time, focus, and reinvestment, an owner's business is typically that owner's livelihood.  For an owner, having a proper understanding of their businesses value is worth paying for.  A business deserves more than an owner's most common valuation method...a generic rule of thumb multiple or a comparison of what an acquaintance sold for.

A worthwhile business valuation will utilize a combination on many business valuation methods including but not limited to valuations of: Assets, Income, Discounted Cash Flow, Historic Earnings, Future Earnings, and Comparable Transactions.

There are many types of business valuations ranging from an Opinion of Value Letter all the way to a full-blown M&A Appraisal.  The purpose of your valuation will determine which type best suits your situation and what depth of examination is needed.  An Opinion of Value Letter suffices for most needs and is most cost effective.