Business owners should regularly take time to consider, “What is my business worth?” Although, as the business owner, this is not something you will be able to answer for yourself, it is an important thought to keep in mind as your business grows and changes over time. And when the time comes to get an answer to this question, you will want to hire a professional to complete a business valuation.
A business valuation consists of a series of processes which determine the total value of a particular business.
Small business owners usually just want to know how much their business has grown since it started. But, many business owners may perform a business valuation as part of other processes, for example:
Yes, every business owner will benefit from hiring a CPA to perform the business valuation. If you are selling the business, you will want the exact price of how much it is worth. A CPA is a professional when it comes to numbers and a business valuation is all about numbers. Considering the most common reasons for performing a business valuation (i.e., tax paying/planning, litigation, etc.), hiring an experienced CPA will be your best option.