What is My Business Worth?
by Michael Moore, CPA, CVA
That is a question that burns in the minds of today’s baby boomer business owners. According to the Federal Reserve Survey of Consumer Finances, the number of businesses sold is growing exponentially.
- In 2001, 50,000 businesses changed hands.
- By 2004, the number of companies sold increased to 350,000.
- By 2009, 750,000 were projected to be sold.
- Over 1,000,000 privately held businesses are anticipated will change hands within the next 18 months.
Business owners are getting older and need to know how selling their businesses will impact the quality of their retirement.
Even though a valuation is necessary for the business owner looking toward retirement, it is an important tool for success with many uses. The process is quite comprehensive and can provide answers to questions that any business owner should ask.
Owners want to know...
- What have businesses like mine have sold for?
- How does my company financially compare with others in my industry?
- What is the outlook for my business?
- What are some strategies I can implement that will increase the value of my business?
Business valuation is not an exact science. It's based on professional judgment, experience and relevant information about your company and the competitive environment. Even though many people may represent that they are qualified to do them, business valuations are best left to the professionals.
Users of valuation services benefit by having a greater confidence that the service they receive is professional in quality, adheres to industry standards of practice, and meets a level of expertise that is credible and worthy of the professional designation.
Michael Moore has been performing valuations as a Certified Valuation Analyst (CVA) since 2001. John Bly has been a CVA since 2009. CVA is a professional designation awarded by the National Association of Certified Valuation Analysts (NACVA). NACVA trains and certifies CVAs to perform business valuations as a service to both the consulting community and the users of their services.
Through training and testing, CVAs demonstrate they are qualified to provide capable and professionally executed valuation services. Specific training is a prerequisite to certification to assure that practitioners have the knowledge and understanding necessary to perform competent services, and to assure a level of consistency and continuity in their work product.
As your business valuation analysts, we can help you find the answers to your questions.
Michael Moore, CPA, CVA
Director
704-841-1120 x 104
MichaelMoore@CPAresults.net
