From pursuing capital to transferring ownership, there are times when you need a third party to set a value for your company. Known as a business valuation, this process does more than help you prepare for a change in ownership. Knowing the value of your Oregon business also helps you see the full picture of your business’s health and status—and helps you make realistic plans for the future.
A business valuation is a collaboration. A qualified CPA will prepare the equation. Your Oregon business attorney will help you navigate through the uses of that valuation.
When to get a valuation for your Oregon business
Every business has a value, and knowing that number can be essential through helping you along your path in business and life. Throughout your time owning your business, there are circumstances where you may need a current valuation, such as:
- Selling the business
- Seeking investment or other financing
- Change in ownership, such as buying out or adding partners
- Divorce settlement
- Estate, succession, and gift planning
- Tax planning
- Entity changes (such as S Corp elections or C Corp conversion)
- Bankruptcy and reorganization
- Strategizing long-term outlook in business plan
Whether making a strategic shift, seeking a new round of investment, or implementing your exit strategy, putting a number on your business is crucial.
Starting your Oregon business valuation
An Oregon attorney knows the ins and outs of business in your area, along with relevant laws and regulations. As we get started on your business valuation, here is some information we’ll review:
- State of your industry and its outlook
- Purpose for the valuation
- Current size of organization
- Company tax returns and/or financial statements
- Assets (e.g., real property, goods and materials, intellectual property, cash on hand, inventory, etc.)
- Liabilities (e.g., debts, mortgages, outstanding accounts, etc.)
- “Goodwill” and intangible assets
All of these factors will combine like an equation to give you the value of your Oregon business.
Business values are also subject to change. We’ll work with you to make sure your business valuation is valid for the timeframe you need it for.
Once prepared, we’ll schedule a teleconference or in-person meeting to review your valuation and address any questions or concerns.
The right number for the right purpose
Your business does not necessarily have one value. Providing the right value for your business depends in part on the circumstances requiring the valuation. For example:
- Valuations for tax planning may be based on a hypothetical fair market value.
- Negotiating a buy/sell agreement may be based on current state of the business combined with a reasonable short-term growth outlook.
- Preparing a strategic value can give the owners a glimpse of the business’s full potential value.
A business valuation, though, is not just a matter of filling in an equation. There’s no standard formula or set of factors that return a perfect value. However, working with a partner who understands Oregon business is crucial to providing a valid valuation that you can rely on.
Start your business valuation
Knowing the value of your business gives you a valuable point of reference for your next steps.
When you work with a qualified attorney, you can also know that the process is being undertaken with accuracy and full regard for the law and your industry.