How to properly value your business

Cohen Greve & Company CPA, P.C.

Opinion vs. Reality

• You may think the value of your business is very high when reality may be a little tougher to see

• The value of your business can viewed differently by the IRS, banks, investors, and potential buyers so be rational with your value

The value of a business

• There are many factors that come into play. Here are a few that you can consider:– Inventory − Client Contracts– Cash on hand − Asset Value − Branding − Online Reputation− Community Involvement − Management

Business Valuation

• The value of a business cannot be measured in a vacuum

• A business valuation must consider current and projected economic climates, the maturity of the business, sales of comparable companies, and more

Purposes for a Business Valuation

• There are many reasons for a business valuation. Here is a short list of a few purposes:

− Family Law Matters − Business Damages − Buy-Sell Agreements − Succession Planning − Estate & Gift Tax Matters − Litigation Proceedings

Valuing your Business

• Don’t be blinded by how you want your company to be valued verses how it ACTUALLY is valued

• Sometimes it is better to take a step back and see your business in reality instead of your expectations

Business Valuation

• Your business valuation is very important to better understanding the success of your company

• For more information on Business Valuations check out our website!