Dangers of using an Online Valuation Calculator


How to appraise a Small Business


How Often Should I Have a Business Valuation Done?

The number of business owners who either do not know or who have the wrong idea about the worth of their businesses is surprising. For the most part, this is because these owners do not place much stock in having business valuations done on their companies. After all, why should they dedicate significant time and resources to a business valuation when they are not ready to sell their businesses? Others may not be interested in knowing the true value of their businesses so long as their firms report profits year after year. However, as a business owner, you need to understand what a business valuation is and why it is important for your business to have one done. Additionally, knowing when to have a formal valuation done on your enterprise could influence the trajectory of your business. Below we will discuss some of the reasons to have a professional value your company and how often to do it.

What is Goodwill in Business?

In certain market situations, particularly in mergers and acquisitions, the term “goodwill” is often used. Goodwill in business is a crucial component of the business valuation process because it lets the acquiring company or simply the acquirer know what they are in for in purchasing the target enterprise. To understand goodwill in business, you need to understand its effect on the operation and acquisition processes. When was the last time you walked into Macy’s or Starbucks? How did you feel about the steep prices you paid for the goods? Did you feel that they worth their price? The answers to these questions should help you better understand goodwill.