Business Valuation and Business Valuations
Business valuation is a confusing and misunderstood topic. We at The Wayfaring Stranger’s Business Blog can help you better understand the concepts that underlie valuing a small business or a mid-size business.
The everyday terms used in the business world are sales, management, business marketing, accounting, inventory, purchasing, etc. A much more evasive concept is business valuation. Business valuation is the process of determining what a business is worth. It is the estimation of what a buyer would pay for a particular business (i.e. company valuation).
Knowledge of business valuation is not necessary when starting a business or when managing a business, or to be a competent attorney, accountant, stockbroker or insurance agent. But those having a basic understanding of value and business valuation will have a tremendous advantage.
If you own a business, your business is likely your largest investment. The quality of your retirement probably hinges on the proceeds that can be obtained from an eventual sale. To ensure that your money, time and hard work is yielding an acceptable return, an owner should periodically check his or her company valuation. Business valuation is of immense interest and importance to any private business owner.
If you want are buying a business or want to start a business, how will you assess opportunity? Your skills at evaluating opportunity (company valuation), and the action you take (or non-action) will have a more significant financial impact on you and your loved ones than all the other skills and abilities you possess including: education, experience, character, work ethic, vision, etc. You need to understand the basic concepts of business valuation and valuing a small business.
If you advise business owners, a basic understanding of business valuation will provide a framework from which the advisor can put himself or herself into the shoes of the client and help him or her make decisions that build value – the ultimate service to any business owner. Every advisor — attorneys, accountants and bankers — should possess a basic understanding of business valuation.
If you are starting a business, your success will depend on many things. Dedication, energy, creativity, adaptability, knowledge, timing and support to name a few. To maximize your chance of success in starting a business, however; the most important thing may be your commitment to continual learning.
How to Buy a Business – Buying a Business
Buying a Business: What to Know Before You Buy a Business or Any Asset
Want to buy a business? Will it be one of the most important decisions of your life? Of course it will. Before you buy a business, you’ll need information and assistance to get it right.
Here is how we at The Wayfaring Stranger’s Business Blog can help you buy a business. Since 1975, private business owners have relied on business owners to provide critical data on a wide range of topics that can help you build and retain wealth through private business ownership. Regular reports include how to buy a business, selling a business, business valuation, business finance, business strategy, tax planning, risk management, profit maximization, succession planning, and much much more.
Second, The Wayfaring Stranger’s Business Blog is one of the leading providers of merger and acquisition services to owners of businesses. We can help you buy a business, sell a business or value a business. We are here to help.