1. Owner Wants To Retire.
- How big is your retirement nest egg?
- It is impossible to say unless you know what your business is worth.
2. Owner Wants To Sell.
- A valuation protects you from low-ball offers as well as unrealistic expectations.
- It also makes your business look more credible to buyers.
3. Owner Has Kids.
- If one gets the business and the other(s) do not, knowing your business’ value lets you treat them all equally.
4. Owner Has Partners.
- To insure business continuity if one leaves or dies, the partners should have a buy-sell agreement pegged to the business’ value and funded with life insurance.
5. Owner Wants To Expand.
- Lenders and investors like third-party appraisals.
6. Owner Doing Estate Planning.
- Do you have an estate tax issue or not?
Impossible to say without a business appraisal.
7. Owner Has Employees.
- Smart employers use stock options pegged to the business’ value as “golden handcuffs” to retain key employees.
8. Owner Getting Divorced.
- Having the business valued by a nationally respected appraisal firm makes negotiations much easier.
9. Owner Likes Bragging.
- It is fun to know your business grew 25% more valuable last year.
- Having it valued regularly makes it possible!
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