Why Companies Need Business Valuations

Every owner or CEO of a company should have a current business valuation in his or her files. Obtaining a professional business valuation will provide accurate and critical information for directing your business decisions.

Even if your company isn’t required to have a business valuation, it is still important to your company’s future to know exactly what it is worth. The American Society of Appraisers (ASA) recommends that every company, whether publicly traded or not, have a current business valuation.

Benefits from having a business valuation:

  1. Know what your company is worth. Many business owners have no idea what their business is truly worth. Emotion often gets in the way of an accurate analysis. A professional business valuation will measure a company’s fair value based on various sources, including the worth of private equity funds, the worth of intangibles, profit/loss trends, revenue streams, and current business regulations which mandate valuations.
  2. Learn the true financial condition of your company. Business valuations include a review and analysis of assets with regards to constantly changing tax laws and new business regulations. This will provide you with an accurate appraisal of the financial health of your company and the ability to make informed decisions about the direction of your company, based on fact, not guess-work.
  3. Make fast decisions on buying, selling, and mergers. By having a current business valuation completed, you can buy, sell, or attract capital for your business, when the timing is right, with the confidence of having all the information at hand. Your company will be prepared for reorganization, Employee Stock Ownership Plans, estate planning, shareholder and partnership buyouts. Having a current valuation will enable you to move quickly as the marketplace and opportunity demands.
  4. Prepare for challenges. Business valuations may be helpful in litigation, for partner split-ups, business disputes, and for tax challenges as needed.
  5. Stay current. The current market is in the midst of huge changes. It is important to get regular business valuations because your company, your industry and the economy are continually changing.

When obtaining a business valuation report, make sure it is completed by an accredited valuation expert who is a member of a professional society working in compliance with established professional standards.

Mr. Al Golden specializes in providing comprehensive business valuation, forensic accounting, litigation support, expert witness, income & estate taxation, complete CFO & controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.

A.M. Golden Accountancy Corporation offers a free initial consultation – The majority of our clients are located in San Diego, Orange, Los Angeles, and Riverside Counties. Our office is located in Carlsbad which is in Northern Coastal San Diego County California. To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com

Filed Under: Blog

Contact Information

Main Office:
140 Marine View Ave., #116
Solana Beach, CA 92075
(760) 634-3300
Click Here for Map & Directions

Telephone Contacts:
Main Line: (760) 634-3300
Main Fax: (760) 652-4898
Al Golden: (760) 634-0990
Brad Golden: (760) 444-1912
Karen Mossman: (760) 444-1917

Mail & Document Drop-off Location:
315 S. Coast Hwy 101
Suite U-62
Encinitas, CA 92024
(760) 634-3300
Click Here for Map & Directions