08:15
Faizan
We all know the importance that a good valuation of business carries, but do we know why it is a good idea to get your assets looked over often? There is only one way to determine how much your business is worth, meaning that you need to make sure that you get a professional valuation, simply because you need to know what is going on regarding your assets. If you are looking at expending and growing your business then you should make sure that you have a recent valuation statement before you proceed.
There are a couple of reason as to why you would not need to get your business valued regularly, but those form part of extenuating circumstances. If you are a business owner and the exit out of your business is more than 10 years away, you can get away without having regular valuations. You also wouldn't need to get your business regularly valued if you are an owner who knows that the value of your business is minuscule in comparison to what you are going to need upon transfer or sale of your business. Even then, it is good for you to have a valuation just so that the other party can know what they are getting themselves into.
The reasons why
Here are some of the reasons that you need to make sure that you get your business regularly valued:
An estimation of how much your company has grown. The value of your assets currently will tell you how much your business has grown. If you want to monitor constant growth then you should make sure that you regularly value your business.
If your exit is close by. If you are looking to exit from your business, you need to be able to give your successor the most up to date version of your valuation certificate possible, meaning that you can hand over everything to them accurately.
To know how much you need to grow. Sometimes a valuation will let you know just how much you need to do in order to get your company to a place that is respectable and making good money.
There are a couple of reason as to why you would not need to get your business valued regularly, but those form part of extenuating circumstances. If you are a business owner and the exit out of your business is more than 10 years away, you can get away without having regular valuations. You also wouldn't need to get your business regularly valued if you are an owner who knows that the value of your business is minuscule in comparison to what you are going to need upon transfer or sale of your business. Even then, it is good for you to have a valuation just so that the other party can know what they are getting themselves into.
The reasons why
Here are some of the reasons that you need to make sure that you get your business regularly valued:
An estimation of how much your company has grown. The value of your assets currently will tell you how much your business has grown. If you want to monitor constant growth then you should make sure that you regularly value your business.
If your exit is close by. If you are looking to exit from your business, you need to be able to give your successor the most up to date version of your valuation certificate possible, meaning that you can hand over everything to them accurately.
To know how much you need to grow. Sometimes a valuation will let you know just how much you need to do in order to get your company to a place that is respectable and making good money.
Posted in: business
