There may be times when you need to place a valuation on your business or another one. For your own business, you may be selling a stake in the company or buying out a shareholder. You may need to know how much the company is worth for tax or family law reasons. You may also want to value another business you wish to invest in or acquire it completely. Business valuation is not an exact science, and you will need an expert to help you reach a realistic number.
Even choosing the proper valuation method can be difficult. There are many possible ways to value a business, including:
Business valuation may be subject to dispute. Reasonable people can reach two entirely different conclusions, and there may be some truth in each valuation. In some cases, a judge may be called upon to decide valuation disputes, especially when there is a shareholder or employee dispute.
It is essential that your own conclusion is backed up by metrics and numbers. Not only are your calculations important in court, but banks and investors want to see a realistic and supportable valuation. If you choose to go beyond financial formulas to include things such as goodwill and brand values, you need to have reasonable conclusions. Even though you may want to maximize the value of your own business, you must also keep your numbers grounded in reality to avoid potential liability.
The attorneys at Naples & Spence can assist you in complex corporate transactions, as well as mergers and acquisitions. To learn more about how we can partner with you, contact us online or call us today at (904) 478-8964.
