Business Valuations
A privately-owned business is often its owner’s most valuable asset. But did you know most owners misjudge the value of their company by 58.9%? (A 2010 study* found just one in ten owners accurately estimated (within 5%) their company’s value; the median error was 58.9%; one guess was off by 1,000%!
Most owners use ‘rules of thumb’ to value their business. That’s a bad idea. It is true that rules of thumb are easy to use and cost nothing, but rules of thumb are always wrong! Their flaw is they assume one businesses is identical to every other business in that industry – which is clearly ridiculous since every business is as unique as a fingerprint. A business owner’s buy/sell, key person, succession planning, retirement planning etc. should rest on solid facts (that is, a proper valuation), not on something as flimsy as rules of thumb.
A good valuation requires an appraiser who understands your business and takes the time to prepare it. (It takes 19 steps to prepare an accurate valuation.) Download one of SPARDATA’s sample valuations to see what a good one looks like.
If you are looking for a valuation firm, please call us at (800) 895-4100. We’d welcome the opportunity to learn more about your business, and see how we can help. The call is free.
The Process: See the steps we take to value your business.
Valuation Products: You have three to choose from.
Buy Now: Get started on your valuation project now.
Free Consultation: Speak with a Value Advisor and tell us your situation.
Sample Valuation: See what a valuation report looks like.
Testimonials: Hear what others say about working with us.
*Unpublished survey of SPARDATA’s business owner clients in 2010.
