If you aren’t planning to sell your company, you may not see how value drivers pertain to your business. Wikipedia offers a few reasons:
“In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to
- resolve disputes related to estate and gift taxation,
- divorce litigation,
- allocate business purchase price among business assets,
- establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and
- many other business and legal purposes such as
- in shareholders deadlock,
- divorce litigation and
- estate contest..
In some cases, the court would appoint a forensic accountant as the joint expert doing the business valuation.”
What I liked about working with them, is that we didn’t get ripped off with fees and false promises. It was good to see someone who had a practical approach to business, someone who could actually understand our business and get results that didn’t cost the earth!
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