Do You Know How Much Your
Business Is Worth? Are You Sure?
A CRITICAL MANAGEMENT TOOL for any business owner is the knowledge and
understanding of his business's value as determined through fact based
analysis.
Most valuations are performed to establish expectations of how much the
business is worth with the intention of selling it. Other valuations
are required for estate or divorce settlements. There are many good
reasons to have regular valuations performed.
- Ownership of company is probably the largest investment that individuals
will ever make. It should be important to know the value of that
investment. No one would be satisfied with an investment in a mutual
fund or publicly traded stock if the value of those investments was
not known on a regular basis. Most of these investments can be valued
daily in the Wall Street Journal. Why would you not want to know
the value of the family business at least annually?
- Many owners do not have any idea what their company is worth. This can contribute to problems in estate planning. A business valuation can also be a valuable tool in planning for college for the owner's children.
- With a proper valuation, an owner may become interested and motivated
in selling the business either proactively or if approached. It is
possible to "cash-out" the owner's sweat equity and continue
to earn substantial money working in the Company, and eliminate the
headaches of administration and continued investment in the business, the
best of both worlds.
- Regular valuations also provide a benchmark to measure whether your
company is increasing in value, and if not, help identify what can
be done to increase value. An informal survey over 100 small companies
showed that over 90% thought they would sell their business some day,
but less than 10% had a plan to help them do so successfully. Failure
to plan increases the likelihood of failure.
CMC, LTD has the extensive Promotional Products Industry market experience
and theoretical knowledge necessary to provide the fact based valuation
of your business. We are the only Industry based advisory firm providing
valuations that conform to the Uniform Standards of Professional Appraisal
Practice. This allows CMC, LTD. to provide the most appropriate market
valuation of your business.
Upon the completion of the Distributor or Supplier Confidential Valuation
Questionnaire with the necessary historical financial information, the
valuation will be completed in approximately 30 days.
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