Preparing your business for valuation

There is a tremendous need for the valuation of small businesses. Oftentimes, small businessowners do not have the wherewithal to gather the data and keep it up to date for use in situations that require valuation. Formal valuations are necessary because they provide objective evidence of value, in...

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Bibliographic Details
Published in:New England journal of entrepreneurship 2005-03, Vol.8 (2), p.59-64
Main Authors: Nowicki, Margaret D., Lewis, Eric E., Lippitt, Jeffrey W.
Format: Article
Language:English
Subjects:
Accounting
Entrepreneurs
Entrepreneurship
Fair market value
Market prices
Related party transactions
Small business
Studies
Valuation
Wages & salaries
Online Access:Request full text
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Summary:There is a tremendous need for the valuation of small businesses. Oftentimes, small businessowners do not have the wherewithal to gather the data and keep it up to date for use in situations that require valuation. Formal valuations are necessary because they provide objective evidence of value, in contrast to value set by markets on which public companies are traded. This article focuses on some factors that impact the valuation of the business and will help small businessowners feel more comfortable talking with financial professionals about how the business might be valued.
ISSN:1550-333X
2574-8904
2574-8904
DOI:10.1108/NEJE-08-01-2005-B006