An accurate business valuation provides so much more than just a number or range of numbers for the value of a business.
A business valuation is typically used by the seller and buyer of a business but it also touches the other parties assisting in the transaction. This includes the business broker or intermediary, any lenders being asked to provide finance for the transaction, the attorney and/or accountant or CPA for the seller and buyer, and other interested parties.
What are the benefits of a business valuation?
First and foremost, it builds confidence as it is done by a qualified third party. Secondly, it establishes trust so that the viewers of the valuation may not agree with the final number but it allows a rational conversation to take place. Thirdly, and equally important, it allows for the parties in the transaction to build a relationship and decide if they can and want to work together to reach an outcome acceptable to both parties.