A business valuation is a tool that can be used to get certified reports for IRS or litigation purposes. A simpler Broker Opinion of Value (BOV) could also be performed, which would determine the listing price for an already-ready-to sell company. However, this BOV could also simply provide information about how much value your current company has as you are looking to improve and/or grow it in any way possible? Did you perform a BOV just months ago but now have questions if its still valid? The answer is: It depends on what type of report was created at the time by whether or not there were recent changes made since then within the company plans.”
Consider the following questions.
Have your financials remained essentially the same or have profits increased or decreased? Have new services been added to your offerings? Did you change business locations or open a second location? Once you answer these questions, you can determine if it’s time.
If you need an answer that offers a tangible timeline, many experts say six months. During this period of time, your business has seen two quarters of profits and depreciation which can be used as significant components in re-calculating the value of your company. Of course if there is any doubt at all about what to do next contact your financial advisor who will pick up from last year’s BOV or valuation report for you