What is Your Business Worth?
Many business owners transition to independence because their old business had an anemic sunset agreement. However, being independent means you are a business owner and the equity in that business is yours. But what is that equity? What are the considerations of a business valuation? Are there ways you can increase the value beyond simply adding revenue?
When Do You Need a Valuation?
When you create your continuity plan
For your operating agreement (plus a plan for all valuation processes in the future)
When you are creating a marketing plan
Annually to track your success in growing your practice
When you are ready to sell your practice
In the event of the death of a owner or partner
When a partner is exiting the firm
When a new partner is joining the firm
A meaningful valuation is an essential tool for you as a business owner in order to strategically manage the operations and growth of your business.
A valuation should do more than just give you a figure of worth. It should explain what the meaningful variables are in determining the value of your business. Which will be crucial in constructing a marketing plan that results in growth and an increase in your equity.
BTS offers two valuation solutions based on your needs:
BTS Valuation Calculator
This is an online solution that offers quick, inexpensive, yet meaningful results. The calculator generates a report to give the business owner an understanding of the factors used to determine value that can then be used to drive the growth of the business. It is an excellent, cost effective solution when annual valuations must be completed.
The cost of the BTS Valuation Calculator is $425. Your account will be active for 6 months (180 Days) and allow you to recalculate your value whenever you choose. The calculator takes just minutes to calculate. You can learn more about the process here.
A full valuation of your business is important when buying Life insurance for the owners, acquiring another practice, seeking financing, providing shares of ownership to others, creating a Buy/Sell in your Operating Agreement. and selling your practice and business.
BTS does not perform traditional valuations. For that you need a fully accredited valuation firm. However, BTS does have many ties with firms in this field and can help you source the right firm for you. We can assist in pointing out the differences in each firm and their valuation services, advise on costs, and help you find the valuation that makes sense for you.
Please contact Dennis Leininger, President, at firstname.lastname@example.org to arrange a free consultation surrounding your specific questions pertaining to a traditional valuation and how we can potentially help.