Is A Business Valuation Needed?
Business valuation is a very important area of practice. It is similar to getting an appraisal on you home except it is on your business. You might need to have your business valued if you are going through a divorce.
In most cases people getting a divorce will not want to keep running the business together. One party to the marriage usually will buy out the interest of the other divorcing person.
The business is in most cases community property. This means that each party to the marriage owns one half of the business. All you need to figure out is how much is half of the business worth so you can buy her or him out. You could also simply sell the business and split the profit.
The wife if she wants to get her share should hire her own qualified business evaluator. The husband should also hire his own person.
The two can use the values from each person to come up with a figure they can agree to and that the judge will accept. With two valuations there is less chance of manipulation of the numbers by one party.
The business value is based on many factors. One of the intangible factors is good will. It might be hard to put a number on good will but you need to find an experienced person in the valuation business who can come up with an estimate of the value of the company’s good will.
A restaurant might not serve the best food in town but customers come in to eat because they like seeing the owner and they enjoy the service from the staff. This is difficult to determine but is certainly part of the business value. Business valuation is needed in many cases. It certainly is part of the divorce agreement when a business owner decides to get a divorce.
There’s more to learn about business valuation and how financial companies can assist you with the service. Please go to the BTG Forensic website for more information.
