Northwest Indiana Small Business Valuation

Northwest Indiana Small Business Valuation

Understanding the value of a business is important for many different reasons, and not just for those who are looking to buy or sell. As a business owner, you surely have a developed understanding of the noneconomic values your business brings to the economy and consumers, but do you know its actual economic worth? As Harvest Financial Planning, LLC, our Northwest Indiana small business valuation professionals can assist you in understanding the value of your business or another business in which you’re interested. Contact us today to learn more. 

What Is Small Business Valuation?

Small business valuation is the purpose of determining the actual market value of a business based on its liabilities, debts, income, assets, and current and future market standing. There are multiple reasons to invest in small business valuation if you’re unsure of the worth of your business. To be sure, a business valuation may be used to:

  • Determine whether or not the business is eligible for financing;
  • Make a decision about mergers, acquisitions, or selling of a business;
  • Create an exit strategy plan;
  • Determine the value of a business in a divorce;
  • Create an estate plan;
  • Determine tax liability; and
  • Make strategic decisions regarding a plan for the business’s future. 

Our Northwest Indiana Small Business Valuation Methods

There are multiple different types of business valuation methods that are used. Our Northwest Indiana small business valuation professionals can explain to you the different methods available, as well as why we use the methods that we do. Some of the most common small business valuation methods include:

  • Asset-based valuation, where the value of a business is determined by the value of its tangible and intangible assets. 
  • Return-on-investment (ROI)-based valuation. Anyone who is investing in a business cares primarily about one thing: what their return on investment will be. The ROI-based valuation method considers how an investor will get out of the business based, primarily, on business market performance. 
  • Market value-based valuation. The market-based valuation method involves comparing similar businesses to others on the market that have recently sold. This can be difficult to do, however, if there’s not enough market data available.

Other small business valuation methods include discounted cash flow, capitalization of earnings, multiples of earnings, and book value methods.

Trust Us to Handle Your Business Valuation

Whether you are thinking about buying or selling a business, dissolving your business, merging your business, or need an accurate business valuation for another purpose, our financial professionals at Harvest Financial Planning, LLC can help. We know that Northwest Indiana small business valuation can have a big impact on your business and your financial future, and we are committed to providing you with knowledgeable, reliable, and experienced financial services. In addition to providing small business valuation services, we can also assist you in planning for your business’s financial future – we offer employee benefit plan services, wealth protection services, succession planning services, and other services.

Reach us today by phone, online, or by email to learn more about how we can be of service. Initial consultations are free of charge.

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