1. Considering a Sale or Merger
While not legally required, obtaining a business valuation is highly recommended when selling or merging a business. It provides a solid foundation for negotiations, particularly around price.
2. Buying or Selling Company Shares
In transactions involving the purchase or sale of company shares, a business valuation is essential. It establishes a fair market value for the shares, helping both parties agree on a reasonable and justified price.
3. Developing a Succession Plan
An up-to-date valuation is a valuable tool in succession planning. It helps define strategic goals, plan for the future, and ensure a smooth leadership transition. It also supports identifying and preparing high-potential employees to take on key roles within the business.
4. Raising Capital
A current business valuation enhances your credibility with potential investors and lenders. It provides a transparent view of your company’s worth, which can significantly influence their decision to invest or extend financing.
