I am constantly amazed at owners of companies that do not want to face the real issues when it comes to valuing their company. It is a sense of denial that is so unnecessary. It could be the most important financial information of your life.

Every business is unique, yet small business owners have a value “concept” in their head and it usually is a concept that misses the mark in reality when it comes to market value of their business. Easily 9 out of 10 owners I consult with have their concept of well above the market.

Is your business the most valued asset on your personal financial statement? Is it even ON your personal financial statement? If so, is the number that represents the value of your company a real and grounded number in today’s market?

Here are few questions to consider asking yourself.
1. Do you have a stable management team?
2. Is your customer base diverse and solid?
3. Do you have financial controls in place?
4. Do you have a growth strategy?
5. Do you have a buy-sell agreement if you have partners or a succession plan if something were to happen to you?

A proper valuation does not mean you are selling your company. But here is a reality. You WILL exit your company at some point. It will either be on your terms or someone else. A proper calculation of value should be a part of your financial plan and exit strategy. Plus, you might even learn how to make your company better!

Call me. I can help

Jim