Valuations can, and do, often fall on the lower end of the price spectrum for various reasons. Firstly, valuers have limited time to turnaround valuations. They usually spend their whole day rushing from place to place to return a full valuation in 48 hours or less. This can result in the overlooking of important information.
Just as people like to check their stock portfolio from time to time, small business owners like to get an idea of their company’s value and changes in its value. Our valuation tool can give you a good idea of your business’ value, based upon your answers to several financial and non-financial questions. A basic valuation is free!
Business life sciences valuation mistakes may also include the use of valuation methods that do not consider all of the business assets. An appraiser relying on a particular business valuation method should ensure that the selected method can consider all the assets of the business.
An annual valuation that clearly establishes a trend in value creation may enable the management of the company to use the shares as acquisition currency for another privately-held company. The annual valuation is also beneficial in the shareholders’ investment decision making process with respect to maintaining the status of the company or seeking liquidity through a merger or sale of the company. The history of annual valuations may provide the shareholders with a foundation for negotiation of more favorable deal terms.