Business Owner Valuations Off 59%

Attention business owners! Nobody can run your business better than you, right? However, from an exit strategy standpoint, if you don’t know what your businesses is worth, there might not be an exit strategy.

Accurate valuations are critical when it comes to the sum of decades worth of work. Without one business owners cannot say if their buy-sell is properly funded, if they have an estate tax issue, if they are treating their kids fairly, if they will be able to sell their business for what they expect, etc. Unfortunately only a few business owners work with a professional to get an accurate valuation.

A 2010 study found owners misjudged their company’s value by 58.9%! They thought the business was worth (say) $5 million but actually it was worth 58.9% more (around $8 million), or 58.9% less (around $2 million). The problem is, they don’t know which. We realize our clients may have a valuation problem but if we tell the business owners to get a valuation, the owners typically respond (i) that they already know what the business is worth (even though they don’t), and/or (ii) they don’t want to spend any money getting a valuation.

Our firm offers free valuation rule of thumb reports for over 650 types of businesses and professional practices. From medial practices, law firms, to construction companies, we can help. Depending on the size and type of your business, we can connect you to the right valuations speciallist today. Call today to schedule a consultation.

In addition to valuation best practices, we offer tax deduction programs including SEP-IRAs and 401ks. To find out what might work best for your business or the maximum you can deduct, please click here to download form and fax return back.