Selling Your Business? The Importance of Business Valuation Services in Toronto?
April 27, 2018 | Written by: Sohail Afzal
[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.86″ background_layout=”light”] If you are selling your business, the best way to put a price on it is by getting an excellent valuation service. Trying to sell your company without having a proper valuation done is operating blindly in the murky waters of business. You want to avoid tricky transactions or even selling your business for a lesser amount than the actual worth. This article comprehensively discusses why it is advantageous for you to get a Toronto valuation service, whether selling part or the whole of your business.
Helps you to know your business betterA business valuation will give you a realistic picture in relation to the state of your company. For every business, working with estimates is not only risky but also downright unrewarding. Estimates are generalizations that lead to losses for any profit-making business. To sell right, get an accurate assessment of your business by hiring a business valuation service. The valuation will give you an exact value judgment, which goes a long way in ensuring that your selling price is fair and true.
Ensures you have the right company resale value
If you look at how many valuation services are in the business world today, you will appreciate the importance of valuating any asset. In addition to providing you with an exact resale value, a valuation company will also give you the reasons for the selected resale price by using black and white statistics. This helps you to answer questions when potential investors/buyers want to know why you are selling your business at a certain price. Furthermore, if you valuate before putting your business on the market, you will know how to increase the value of your company, thus fetching a higher selling price.
You get the true value of your businessMost business owners assume that a company’s worth is about total asset value, bank account balances, and stock market value. This is, in fact, a misguided assumption. To know your business’s true value, you need to do numerous calculations while considering many factors. A company’s true value is usually the deciding factor when it’s time to sell because it shows its income and how much it has grown in a given period. It is a fact that buyers would fight over a company with a good income and growth potential. If you want to make your company worth fighting for, first get a good valuation.
Access to more investorsA valuation is paramount for those looking to sell part of their business to expand or as a way of preventing financial disaster. If you are looking for someone to invest in your business, be sure they will need the company’s complete valuation report. This is because a valuation enables an investor to see clearly where money is going and how your business will give them return on investment. Without a valuation, no one will want to put money in your business. With a valuation, you are likely to receive more offers that you expected. The above advantages are just a few among the many benefits of a valuation. Ensure to get an excellent valuation before you even start the process of selling your business. This way, you will be sure of what you deserve out of the sale. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.