Many business owners think that their business is worth more than it actually is. That is because a business\u2019s value to a seller is more often than not the same value to a buyer. For one thing, there are several valuation methods that can be used and even choosing the correct method (or more likely, the correct combination of methods) to use in a given situation is more of an art than a science.<\/p>\n
There are a number of instances when you may need to determine the market value of your business. Indeed, buying and selling a business is the most common reason. Estate planning, divorce settlements, determination of a buy-out price for a partner\u2019s share or verification of your worth for lenders or investors are other reasons. To intentionally cultivate business value over time should be the focus of any business owner and an annual valuation can be used to measure the performance of the business.<\/p>\n