As a financial advisor who serves Gen X & Gen Y business owners, I know that many small business owners have a significant portion of their wealth tied up in their business.
It is essential for them to properly value their business. However, some owners tend to delay getting their business valued, assuming they can figure it out later. This approach can be risky, especially if they’re planning to use their business as a personal retirement savings vehicle.
Without knowing the value of their business, they can’t make informed decisions about when they can make work optional or what kind of lifestyle they can expect in retirement.
A business valuation can provide owners with a clear explanation of the value of the business, along with evidence to support the result. It can also help owners identify areas where they need to refocus their efforts and guide strategic decisions and business development plans.
Furthermore, a business valuation report is required for various purposes such as securing outside capital from investors and lenders, negotiating mergers or acquisitions, facilitating a buyout or dissolution of partnership, and determining fair market value for divorce or estate settlements.
A valuation report can also lead to tax benefits an owner might not otherwise claim, and help determine the appropriate level of insurance coverage needed for the business. An owner who is injured or wrongfully distracted from business can use a historical valuation to recover losses.
Many business owners avoid getting their business valued because they perceive traditional business valuations as extensive, expensive, and invasive. However, thanks to innovative technology, online valuations are now available at a fraction of the cost and can be completed much faster than traditional valuations. As a result, there’s no excuse for business owners not to take this critical step in managing their business’s finances.
As a wealth management practice that serves Gen X & Gen Y business owners, our Abundant Wealth Process helps align our clients’ money with their goals, make smart financial decisions, and proactively manage the risks and taxes that come with business ownership. Therefore, we encourage business owners to get their business valued and provide them with the necessary support to make informed decisions about their financial future.
Would you like to align your money with your goals, make smart financial decisions, and proactively manage the risks and taxes that come with business ownership and life?
That is what we help clients do.
Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way Cincinnati, Ohio 45242 (513) 794-6794. Investment Advisory services offered through O.N. Investment Management Company.
