If you are looking into getting a business valuation for one reason or another, then you should also use that same valuation for other purposes as well. Most entrepreneurs only think about them if they are looking to sell the business, but they can also be used for a number of other things. If you are new to getting business valuation, or are wondering what you can do with the most recent one you just got, take a look at some of these other ways to take advantage of it.
Expansion & Loans
When you are trying to expand your business to the next level, you will most likely need to get some financial help. Although your company might be thriving, expanding doesn’t come cheap. So when you are looking to get some funds on credit, you will need to provide some type of proof that your company will be able to pay the funds back, plus interest. A great way is to just provide the valuation report, which will give them details of your business’ financial situation and some future predictions.
Financial Management
Losing control of your finances? If so, you are not alone. A valuation is a great way to figure out exactly where you are and how your money was spent. Professional valuators will go through all aspects of your business to ensure they come up with accurate information to give you the best report possible. Once you understand how your finances are being spent, it will be much easier to start to come up with a way to fix them and put that money to better use. Running your business more efficiently will greatly help you grow and become a thriving force in your industry, so use that valuation to your advantage!
Selling The Company For A Higher Price
As most of us already know, a valuation is required when trying to sell the company. Not only does it provide the buyer with a lot of the financial information that they need to review, but it also gives you an upper hand when it comes to negotiating on a price. A lot of buyers will try and offer really low amounts that won’t really be much help, but when they do, you can easily provide proof of how much your business is worth and convince them to buy the company at a much higher price.
Minority Shareholder Disputes
While this issue will only apply to companies that have multiple shareholders, it is an issue that can be easily resolved with a valuation. If a majority shareholder thinks that they are not receiving as much as they should be, this could create an internal dispute within the company that could go bad pretty quickly. So, before anything bad happens, have an expert valuator come and review everything to provide a report with exactly what is going on. Once the shareholders review it, correcting any issues will be much easier.
Tax Accuracy
Taxes can be a pain for anyone, but the larger the company, the more taxes need to be done. So, prior to doing your taxes, you should get a valuation done so that there are no discrepancies on your taxes. Submitting incorrect taxes could either make you lose money, or get audited. No one likes to be audited, so just play it safe by making sure everything is done properly and accurately.
Conclusion
These are just a few ways that you can take advantage of getting a professional business valuation, but there are plenty of others. The thing that you have to always make sure of is that you hire a valuator that has a lot of previous experience and understands how to handle your business. Every business is different, so the valuations and approaches will be different as well. Don’t just choose the first and cheapest valuator just to get it done. That will only result in either incorrect information or needing to have the valuation redone. There are plenty of valuator options out there, so just take your time and choose the best one for your specific business and you will be provided with an extremely helpful report.