It is common for executives at companies to undergo an annual physical. Likewise, these same executives will likely examine their own investments at least once a year. However, these same capable and responsible executives never consider giving their company an annual physical unless required to do so by rule or regulations.
Most Business Owners Don’t Know
Recently, a leading CPA firm undertook a study that was quite revealing. In particular, this study concluded that a whopping 65% of business owners don’t know the value of their company and 75% of the surveyed business owners had their net worth tied up in their businesses. Phrased another way, 75% of business owners don’t know how much they are worth! Perhaps most striking of all was the fact that a full 85% of business owners have no exit strategy whatsoever.
Having Recurrent Valuations is a Must
Annual valuations are a must for business owners. They can help identify potential problems and understand how your business compares to others. If you’re not sure if your business is worth what you think it is, reach out to a professional for assistance. They can help you set a reasonable valuation and understand all the ins and outs of your company’s worth.
“Buy, Sell or Get Out of the Way”
Many business owners don’t have an accurate annual valuation of their business. This can leave them unprepared if a potential acquirer enters the picture. Without knowing your company’s value, you may miss out on a tremendous opportunity!
It’s important to be ready for anything, so make sure you have a current valuation in place. This will give you the information you need to make the best decision for your business. Don’t miss out on an opportunity because you didn’t take the time to get a valuation!