Benefits of Business Valuation: Oleksiy Nesterenko

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Benefits of Business Valuation: Oleksiy Nesterenko
14.01.2016 17:43

Many business owners work day in and day out to build value in their companies, but few know the actual value of their enterprise.

Knowing the true value of your business is important for a number of reasons. Obviously, you need to know the value of any business you are considering buying or selling, but valuations are also needed to borrow money, take on a partner, develop or update an estate plan or gift shares of the company.

Los Angeles city, one of the largest metropolitan areas in the United States, is the home to 22 million people and 2 million businesses. One of the largest business and commerce centers in the world. It is not a surprise that business transactions are very common and a critical upfront step in every business transaction is a business valuation. Let's look deeper into the benefits of a Business Valuation.

First, let's take a quick look at the current state of the economy. The economy has had a strong rebound from what many called "The Great Recession". The stock market is up, housing values are rising, investment and consumer confidence is growing by the day. During the recession things were tough for a lot of business owners. Many who would have liked to exit could not; they simply could not get what they deemed acceptable due to the current value determined by the business valuation of their business. Now that things have improved, valuations are looking better and more businesses are planning their exit strategy. Another trend is that of baby boomers getting older. Many baby boomers will retire, exit their business and will need a business valuation.

 

Why a business valuation? As a business owner who plans to exit, you must set an asking price. A business valuation justifies your asking price, while it also shows buyers that you are serious. Buyers will not offer if a certified third party business valuation has not been conducted. The only way to determine true market value is through a certified business valuation. A buyer will analyze a business valuation of business including the factors, similar sales, value drivers, etc to gain comfort and confidence in their offer. And a business valuation must be done by a third party to maintain objectivity.

What is included in a business valuation? A Business Valuation includes value drivers, industry and economic situation, calculations, financing, terms, similar sales and many more factors that impact value of a business. Many believe a simple calculation will accurately determine the worth of their business. This is completely false, there are many calculations and they vary greatly. In addition there are many things to consider that a simple calculation cannot take into consideration.

Who should you choose when obtaining a business valuation in Los Angeles? First, it all starts with confidentiality. You must choose a reputable firm like Oleksiy Nesterenko Startup Finance whose first priority is confidentiality. Experience and track record are also critical. As mentioned before, it must be a third party to be taken serious, otherwise there is a conflict of interest.

Oleksiy Nesterenko Startup Finance, a seasoned finance and business development professional, offering over 9 years of experience across multiple areas of business including financial planning and analysis, capital raising, corporate finance, business strategy development, and M&A.. With involvement in number of business valuations, Oleksiy Nesterenko have the reputation, experience and know how to assist you with your business valuation in Los Angeles, CA. Well Oleksiy Nesterenko is based in Los Angeles, CA, but work with clients from every part of the world.

Specialties: Startups, financial reporting, financial planning and analysis, business plan development, business valuation and analysis, capital raising, corporate development, M&A, acquisition tactics and strategy, and emerging markets expertise

For more info please visit: http://www.oleksiy-nesterenko.com/









 

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