You may be required to determine your business’s valuation, often known as its fair market value, as a business owner. The following situations call for a small business valuation process:
- Loan refinancing
- Do you intend to add new shareholders or partial owners?
- Considering selling your business.
A valuation may also be necessary in personal legal actions; for example, a divorce may call for a detailed audit of your company’s assets. Business valuations can be computed in a number of different methods. Your choice of strategy will be influenced by elements including your industry, the basis for the valuation, and the state of your company. Small enterprises, conglomerates, and startups with venture capital funding can all use various strategies.