Business valuations are a critical component of knowledge and understanding in any divestiture. One needs to know where one is, before determining where to go and how to get there. A business valuation will do just that. It will highlight the economic and market value of the business where one can then determine if in line with one’s expectations or not. It should also highlight the key value drivers within the business and reflect where said drivers are at within the business relative to say zero and ten. One can then understand that which one needs to do and which drivers need to be focused on in order to enhance and or maximize the value of the business.
It is also important that the determination of value be approached with the specific “purpose” of understanding true market value, or as Pacific M&A and Business Brokers call it the “Most Probable Selling Price”. This is an interpretation of the most realistic price a buyer in the market would pay for that business.
Do you know what the value of your business is? Call us for a free confidential consultation to understand the costs and time lines in performing a business valuation of the Most Probable Selling Price.