When to Hire a Business Appraiser
A business appraiser is an individual who determines the value of a company. Most often to determine a fair selling price. A business owner may need a fair business appraisal for a variety of reasons. Anytime an individual needs an unbiased, third-party opinion of a business’s value, they hire a business appraiser. Learn more about what these experts do and when you might need their help.
Reasons for a Business Appraisal
When buying a business, you want to feel confident you are buying the business for a fair price. Obtaining a business appraisal can help you understand what the business is worth. Understanding the strengths and weaknesses of the business can also help during the negotiation process.
Before you sell a business, obtaining a business appraisal can help in determining the listing price. It can also provide support to the purchase price during the negotiation process. If you are preparing to sell your company, a business appraisal can help you understand the strengths and weaknesses of your company. And identify areas of growth to maximize the value of your business.
For any business owner, understanding the value of your business is important. A business appraisal compares your business to that of your peers and analyzes your financial statements. A valuation report then highlights the strengths and weaknesses of your business. A quality business appraiser like Peak Business Valuation spends time helping you understand the value of your business as well as areas to focus on to maximize growth.
A common reason to obtain a business appraisal is when a partner is buying into or leaving a company. Obtaining a business valuation can help ensure the buyout is favorable for all the business partners and the company. Learn more about what you need to know for a partnership buyout here.
A business appraiser may be needed to value a business because of shareholder disputes, divorce, etc. when a business is involved. A business valuation can help the parties arrive at a fair settlement for the ownership interest.
As part of the process of obtaining an SBA loan, often a business valuation is required. The lender orders this business appraisal through a third-party business valuation firm like Peak Business Valuation, business appraiser Utah.
Often a lender needs an independent third-party opinion to value the business as collateral for a loan. A business appraisal will increase the chance of investors and lenders loaning you money.
Having a current business appraisal can help you plan for the future. Especially if a business is part of your estate, you do not want to leave your heirs with heavy taxes to pay. Knowing the value of your business can help you adequately prepare for the future.
Finding the right business appraiser is important. As such, here are a few other items to consider when evaluating a professional business appraiser.
- Work Experience
- Industry knowledge
- Professional Credentials
For more information see Finding a Quality Business Appraiser.
These are just a few examples of when a business owner may need to seek a business appraisal and how to find a quality business appraiser.
Peak Business Valuation loves helping individuals understand the value of a company. We provide high-quality business appraisals, built on helping you build a business that thrives. Schedule your free consultation today to get started!
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