Business owners are each in unique situations, resulting in a variety of reasons for the need for a business valuation. Sometimes it is estate planning, other times a business transaction whether buying or selling a business, other times it could be financing, partnership disputes, divorce, etc. Most business owners start a business but they have no idea, plan or strategy to exit the business. Also, most business owners only experience one business transaction in their life, that is not a lot of business transaction experience and can lead to costly errors. One of the most common is the lack of or an inaccurate business valuation Pennsylvania. An accurate business valuation by an expert third party professional will be taken seriously by buyers, sellers, financing underwriters, etc. Anything but a professional business valuation will not be taken serious. It is thus critical to have an expert firm who specializes in business valuations provide a professional Business Valuation in Pennsylvania.
Let’s look at some example situations. The first situation is a party representing the business seller performs a business valuation during a business transaction. This party is biased towards the client trying to sell, thus the likelihood of the valuation coming in high is very common. A second situation is a business valuation is conducted by a party representing the business buyer. Again, this party is biased towards the client and the business valuation will likely come in low. As you can see there could be an enormous discrepancy in the result of the business valuation in these two situations. Sometimes worlds apart, the fact is the only way to accurately determine true market value is for an unbiased third party business valuation firm to perform a business valuation in Pennsylvania.
Many formulas can be used to calculate the worth of a business. However, there are no accurate formulas as every business is unique. Furthermore, every market, the economy, timing, financing, demand, similar sales, terms, etc are all unique. These all have to be factored into the equation when conducted a business valuation and determining true market value of a business. Assets, potential of growth, land, leases, contracts and other factors also have to be considered.
The importance cannot be emphasized enough of an accurate business valuation in a business transaction to all parties involved. This includes the business buyer, seller, representation of both, financing underwriters, etc. Again, the business transaction experience of most is only one business transaction in a lifetime. The result of overpaying or underselling a business could be a monumental error that must be avoided and can. The way to avoid this is to have a professional third party unbiased expert perform an accurate valuation of the business.
A Neumann and Associates has long been a respected and reputable firm that can be counted on. They have been involved with thousands of business valuation Pennsylvania, have over 100 years of combined business transaction experience and always have a commitment to confidentiality and professionalism. For questions and to contact A Neumann and Associates simply visit www.neumannassociates.com/contact.cfm.