Strategic & Business Planning

Valuation for Strategic & Business Planning

The appraisal of the business and the valuation report and the value conclusion thereof is an important strategic planning tool. The focus of a business appraisal for strategic planning purposes is not as much on the ultimate conclusion of value as it is on the overall process, inputs, and analysis. A valuation report can help business owners answer the following questions:

• How might a buyer consider valuing my company?
• What is driving the value of my business?
• What risks are negatively impacting the value of my business?
• What is happening in the marketplace within my industry?
• How do we measure up from a financial standpoint with other companies like us?
• What are the intangible assets that don’t show up on the balance sheet?
• What can we do to enhance the future value of the company?

By answering these questions sooner rather than later, owners will have the opportunity to make strategic decisions that favorably impact the value of their business. Every business owner will eventually exit their company one way or another. Whether that exit is one year or 20 years from now, understanding the value of your business today will give you the tools to create a better result in the future.