29th Mar 2016
Ascertaining the worth of your company and its assets may be something you need to do while selling your business. However, the process of appraisal is also undertaken at a number of other times for various purposes despite having no intention of liquidating the assets. Here are a few times when you will have to approach professionals for a certified business appraisal.
1. At times when the shareholder or even the stake holders of the company come to a misunderstanding and contest the value of your firm; you will need appraisal. It is the easiest way to settle such disputes as you will be offering tangible proof and the opinion of a certified professional. This is a far better way to sort things rather than to engage in negotiations that lead you to court, meaning downtime for your business.
2. It can be handy when you intend to pass on the business to your children or a successor. The value of the company being handed down will need to be proven for legal documents as well as taxation.
3. In the event of a breakup of a marriage, it is natural that the assets be divided between both the spouses. In order for there to be just division, you will need to know the current worth of the enterprise. This is specially advised by your lawyers at the time of separation itself.
4. There will be times when a member of the staff, or your board of directors will be taking over a part ownership of your concern. Such an instance is also known as a partial buy-out that demands valuation.
Certified business appraisal is also a part of full disclosure, so your shareholders may request this of you and you will be mandated to comply, which is why hiring a certified professional is advised.