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Why-Is-Business-Valuation-Important-Find-Out-Here-

The real value of your business in order to make informed decisions. BDJ Consult offers sessions of business valuation services for entrepreneurs and helps them in identifying what they are worth so that they can grow. Determining the economic value of a company is called business valuation.<br>

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Why-Is-Business-Valuation-Important-Find-Out-Here-

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  1. Why Is Business Valuation Important? Find Out Here! The real value of your business in order to make informed decisions. BDJ Consult offers sessions of business valuation services for entrepreneurs and helps them in identifying what they are worth so that they can grow. Determining the economic value of a company is called business valuation.

  2. What is Business Valuation? Definition: A process to determine the economic worth of a company or its assets. Not an exact science, but an informed opinion. It is based on objective analysis of many sources. Considers tangible and intangible assets, market conditions, and future potential. Examples: real estate, stocks, bonds, businesses, and intangible assets like patents.

  3. Key Reason #1: Mergers & Acquisitions (M&A) Determining a fair price for buying or selling a business is important. 1 Prevents over payment by the acquirer. Also prevents undervaluation by the seller. 2 Example: Company A wants to acquire Company B. Valuation determines Company B is worth $50M. 3 Harvard Business Review says 70-90% of M&As fail due to poor valuation. 4

  4. Key Reason #2: Raising Capital & Investment Attracting investors by showcasing a company's true worth. Substantiating the value of equity for investors is crucial. Example: Startup seeking Series A funding. A valuation of $10M. Venture capital firms use business valuationto determine investment terms and ownership.

  5. Key Reason #3: Litigation & Dispute Resolution 2 Determining damages 1 Establishing financial value Financial settlements 3 Example: Partner A sues Partner B for mismanagement. Valuation determines the financial impact.

  6. Key Reason #4: Tax Planning & Reporting Fair market value 1 Determining fair market value for tax purposes. Compliance 2 Ensuring compliance with tax regulations. Minimize liabilities 3 Minimizing tax liabilities through valuations. Example: Family transferring ownership of a business. Valuation determines the gift tax liability.

  7. Common Business Valuation Methods Asset-Based Approach 1 Net Asset Value (NAV), Book Value - Focus on balance sheet assets. Income-Based Approach 2 Discounted Cash Flow (DCF), Capitalization of Earnings - Projects future cash flows. Market-Based Approach 3 Comparable Company Analysis, Precedent Transactions - Compares the subject company.

  8. In Conclusion: Valuation Matters! Provides crucial insights for informed decision-making. Impacts M&A, fundraising, litigation, and tax planning. Choose the right valuation method for your specific needs. Seek expert advice to ensure accuracy and reliability. Questions? [Website: bdjconsult.com] Contact us : +971 506528816

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