A valuation is used to determine the value of your company. Business owners use this calculation to understand what their company is worth at a specific moment in time. Business valuations are routinely used in mergers and acquisitions, dispute resolutions such as marital settlements buy-out of shareholders or inheritances.
A valuation performed by cfg is in accordance with the standards of the United States’ National Association of Certified Valuators and Analysts – NACVA. A valuation report performed under NACVA standards may deter litigation to the extent that a court-ready opinion has been provided by a financial expert. A valuation report furthermore adds credibility to any proposed transaction.
cfg involves all key stakeholders in the valuation process, which makes acceptance of the final report more likely. Objections or differences of opinion are discussed beforehand and will be taken into account when reaching the finance conclusion of value.
When do I need a business valuation?
A business valuation can be used in the process of selling your company, dispute resolutions such as divorces, inheritance and buy-outs.
In case of a buy-out, a buy-sell agreement establishes how one partner should pay for the shares of another partner (or to his/her heirs in the event of death). Integrating a business valuation into a buy-sell agreement is critical to ensure that all shareholders are treated fairly and equitable.
Another example of when to use a business valuation is when selling your company.
Selling your company
A business valuation enables the business owner to better understand the realistic value of the business and confirm in advance whether selling the business would enable the owner to achieve his financial goals. A business valuation is an important building block that allows the owner to make an informed decision about the viability and timing of the sale of the business.
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