What is a business valuation and how is it used?
A business valuation is the estimated economic value of a company at a specific point in time. The value of a company can vary over time depending on numerous internal and external factors, and there are several methods that can be used to calculate the projected value.
Valuations are used for a variety of reasons, including negotiating pricing when buying or selling a business, planning for future taxation, establishing ownership, and providing litigation support, among others.
It’s important that your valuation specialist be correctly credentialed and experienced. At HW&Co., our valuation professionals have obtained AICPA’s Accredited in Business Valuation (ABV ®) designation, in addition to a wealth of technical expertise and real-life experience.
What qualifications are important when selecting someone to appraise my business?
Only accredited business appraisers are appropriately trained and qualified to provide defensible business valuation reports. Look for the following designations when selecting your valuation advisor:
At HW&Co., our valuation professionals have the ABV designation.
Why might I need a business valuation?
You might consider obtaining a business valuation to provide information for the following:
How do business appraisers determine value?
There are three general approaches to determining an entity’s value: