What's so important about having a valuation of my
company?
Small business owners spend most of their time IN THEIR business
and not ON THEIR business. Further, they view expending money on
getting a professional valuation performed as a completely
unnecessary expenditure, particularly if they have no immediate
expectation of exiting their business.
Consider the following reasons an "estimate" of value
may be a wise investment of time and money.
- Sets a starting point and can remove
unrealistic expectations of company value.
- Will provide important feedback on
industry multiples and how your company compares to its peers.
- May tell you where you are in the
industry cycle. Owners need to prepare so if they need to exit
perhaps it can be at a cycle high instead of a cycle low.
