Business valuations provide you with an objective measure of a business’s fair market value as determined by professionals outside of the business’s operations. Selling a business without an accurate valuation is like trying to plan a route without determining where you are on the map. Valuations can also provide new perspectives and opportunities for businesses that they may otherwise miss out on.

Valuations tell you where to start

The fact is, planning your exit strategy is completely dependent upon the data you get from a business valuation. A simple estimation of value without expert analysis from accredited business valuators can start you off in the wrong direction.

First and foremost, a valuation encourages you to look at all the constituent parts of your business: just like you need to consider the wiring, plumbing, age, renovations, and location of a home to determine its fair market value, your business’s operational health, market position, brand value, and other aspects need to be closely considered.

Business owners who plan to pass ownership to family members also need a valuation. A valuation is vital for a smooth transition and equitable distribution among family members. Once you have a valuation, you can start planning an exit strategy with confidence.

You need it for financing

Valuation reports provide investors and lenders what they need to know if a business can generate returns on investment and repay loans. Prospective buyers also need concrete proof of the business’s value so that they can strategize the financing of their purchase properly.

Receiving a valuation can create new opportunities

New opportunities for growth and cost-savings can be discovered when you put a business under a microscope. When receiving a business valuation, every aspect of the business is considered by a professional outside of your operations. This is a huge opportunity, as they can provide you with their own perspective on what needs to be done to improve the business and its value. Without the valuation process, you might be completely unaware of opportunities to improve your market position, cut costs, or adopt new goods or services that build your brand.

How can Bridge help?

Thinking about selling your business? Bridge Financial provides a number of free services for business owners, such as business valuation estimates, business health scores, and seller readiness evaluations. Throughout the process of valuation, we can also alert you to:

• Opportunities to optimize your business’s operations, boosting revenues and value
• Factors that reduce your business’s value, and ways to address them
• New strategies you haven’t yet utilized, like marketing techniques or tech platforms, that can take your business to the next level
• Whether you’re ready to sell, and what it will take to get there

If you’re ready to take the leap and get on track for sale, we offer accredited business valuations as a part of our comprehensive slate of services. 

Get in touch for a free consultation with a Bridge advisor and learn more about your business’s potential.