Practical Reasons to Consider Certified Business Valuation

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3rd Jul 2016

In a world where businesses get sold every hour, certified business valuation becomes crucial. If you want to sell your business, you must know just how much your business is worth. In case the value is overstated, you may end up with no one coming forward to buy. If the value is understated, you will lose money in the process.

Difficulties in Valuation

Valuing a business is not something easy. The assets that contribute to the value of the company are both tangible and intangible. The intangible assets are usually intellectual property and knowledge assets. These need to be assessed carefully. A proper valuation will give you an upper hand during negotiation. Deciding the price based on assumptions of the business owner will not have any value in the market. The owner can’t determine the price of the company. There aren’t buyers who will be willing to pay a price the company is not worth.

How to Determine the Business’ Value?

Ascertaining the value of the company with mere estimation is impossible. How you or others perceive the value of the company is irrelevant. What matters is the real value of the firm. Its worth should be assessed objectively and without any ambiguities. Certified professionals can do all this. A simple business that has its office in a single location can be easier to appraise. A company that has a lot of intellectual property and an extensive network is more difficult to value.

In conclusion, certified business appraisal is significant. An unbiased report performed by a certified expert holds good value in the market. Get your business appraised today!