Why a Business Valuation is Important
At some point every business owner needs an accurate, thorough valuation or appraisal. A professional business valuation prepared specifically for your company should be objective and focus on the unique attributes of your business.
As a business owner, you may be thinking about an acquisition, the sale of your business, your exit strategy or succession planning. A professional business valuation should be an important tool for business owners to analyze and plan their business’s financial strategy throughout the lifetime of their company. And it’s smart to leverage this tool before making major decisions so that you’re operating in a truly transparent way that doesn’t lead to any unpleasant surprises.
There are many reasons why knowing the value of your business is important.
Ideally, owners should maintain an up-to-date understanding of their business’s value so they’re prepared for a wide range of situations, the most common being a potential sale. However, unexpected events can occur without notice too, and having a current valuation can be crucial when fast, informed decisions are required.
Below is a brief list of situations where knowing the value of your business becomes especially important:
- Business Sale
- Partnership Agreement
- Partnership Buyout
- Mergers and Acquisitions
- “C” Corp. to “S” Corp. Conversions
- Litigation
- Insurance Claims
- Valuing Intellectual Property (IP)
- Employee Stock Option Plans (ESOPs)
- Loans/Financing
- Estate Planning
- Exit Strategy Planning
- Prenuptial Agreements
- Divorce Proceedings
- Gift and Estate Taxes
- Business Liquidation
What is a business valuation?
A business valuation or appraisal is the independent and unbiased process of determining a supportable opinion of the value of a business, business ownership interest, security or intangible asset as of a specified date.
All Murphy company valuations are performed by qualified, professional appraisers experienced in all aspects of business valuations. Compliance with industry standards ensures that proven peer-reviewed valuation methods are used to develop defendable opinions of value. Murphy appraisers stay abreast of developing valuation issues and related court cases.
How Can Murphy Business Help?
When it’s time to sell your business, setting the right price is crucial. Overpricing can scare off potential buyers, while underpricing means missing out on potential earnings. That’s where Murphy Business Sales – Irvine comes in. We specialize in delivering precise and thorough business valuations to ensure you maximize your sale.
With Murphy Business, you can trust in the accuracy and depth of your valuation. Our certified valuations are conducted by professional appraisers who are experts in every aspect of business valuation.
Whether you need a valuation for legal reasons like divorce or partnership agreements, or for financial planning such as life insurance or retirement, our expertise is at your service. Rely on Murphy Business Sales for the insights and guidance you need to make informed decisions and achieve your business objectives.
What’s Your Business Worth?
All Murphy valuations are performed by qualified, professional appraisers experienced in all aspects of business valuations and the business transfer process. Our valuations are performed in compliance with Uniform Standards of Professional Appraisal Practice (USAP), as well as the Business Appraisal Standards of the Institute of Business Appraisers. Adhering to these standards ensure that proven, peer-reviewed valuation methods are used to develop defendable opinions of value.
What Type of Business Valuation is Right for You?
Broker’s Opinion of Value (BOV)
This report offer comprehensive insights for determining the market price of a business, whether you’re looking to buy or sell. They are tailored for smaller companies that do not need a certified valuation but still want accurate and reliable information. With a focus on brevity and clarity, these reports provide concise summary that is easy to understand.
Certified Valuation Report (CVR)
Prepared by a certified appraiser, this report is designed for more complex business acquisitions and divestitures, IRS submissions, partner disputes, and bank loan – particularly when information will be presented to third parties. Summary reports can be easily read by non-financial professionals who need to quickly understand the valuation of the company.
UNLOCK THE VALUE OF OUR BUSINESS WITH MURPHY BUSINESS SALES-IRVINE
For a business valuation, simply click the “Contact Us” link below. Our team is here to assist you every step of the way.
