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Congratulations! As a business owner, your most valuable asset is your business. So if we ask you today “What’s your business’ worth?” – would you know the answer? If a business owner needs to find out what the business is worth, determining its value isn’t as simple as looking up a stock price. For that, a business valuation is needed and at cfg we have the expertise in-house to provide you with certified valuations.

Not that long ago, the annual financial statements were used as the main ingredient in conducting a valuation of the company. While that is still relevant, nowadays a variety of valuations need to be done in order to prepare our financial statements. In other words, the valuation has become the means to preparing sound financial statements.

Not so long ago, we were engaged by two different car rental companies in Aruba to perform business valuations. The purpose of both valuations were to calculate the value of the company in case of a potential sale. Both car rentals are similar in size, revenue and net income. These companies are both focused on the tourism market.

Too many business owners have no clue how to eventually leave (“exit”) the company that is so dominant in their lives today. This is worrisome, since on average 80 to 90% of their net worth is tied up in that company. In other words, they are working for decades on creating something ‘valuable’, but do not know how to harvest that value once it’s time to move on to a new chapter in their lives.