The business valuation process is used to determine a fair market price for a business. Evaluating the worth of a business is critical when buying or selling a business or part of its ownership. It is the only way one can accurately judge the value of a business. Many business owners will evaluate their business annually as another way to measure their company’s financial health.
It is strongly advised to hire a CPA and lawyer specializing in business valuation to assist with the actual process of buying and selling of a business. Before reaching this step however, the Central Indiana Small Business Development Center (Central-ISBDC) can help by running preliminary valuation reports that will allow us to suggest a realistic asking price.
Using a licensed valuation program, the Central ISBDC can help clients value their business using three standard approaches—Asset, Income and Market—using several different calculations. Contact us to learn more.