Business Buyer

A valuation is done to determine the worth of a business. These services are provided by a professional appraiser with certification from the state. Those working with a brokerage company will often find that these services are available from the broker, as well.

The cost of the valuation process varies, depending on its purpose. Not all circumstances require the most work-intensive appraisal. A business valuation done for a lawsuit will require more intense work than one done to get a general idea of the worth of the company for personal reasons.

Reasons to Get a Business Valuation

Here are some of the most common reasons to have an appraisal done:

• Divorce proceedings. A couple who own a business together often have a valuation done to facilitate splitting their assets.
• Estate planning and taxes. A business left to a person's heirs must be valued to determine taxes owed.
• Dissolving a partnership. Partners need a business valuation to create buy-sell agreements.
• Buying or selling. To buy or sell a company, the price must be determined by a qualified third party.

There are five common types of appraisal methods. Each looks at a different aspect of the company's revenue stream. Generally, a combination of these methods will be used to gain a more comprehensive idea of what a company is worth.

RPI Commercial is a brokerage company that facilitates the buying and selling of businesses and helps new owners start their own companies. For more information on the many services available, call 1-877-549-5210 or send an email to info@rpicommercial.com.