Business Valuation and Value Enhancement

Your business means the world to you. Through it, you provide valuable goods and services, jobs and a livelihood for you and your family.  Your business is very likely your largest and most important asset. How certain are you that you have an accurate picture of the value of your business?  According to the research firm IBIS World, 98% of business owners don’t.

Arete Advisors works with you to help you objectively understand the value of your business, benchmark your company against your peers and help you identify and implement initiatives to drive growth, reduce risk, reduce taxes and enhance value. 

Why is it important to understand the value of your business

Many business owners subconsciously believe they only need to know the value of their business if and when they are contemplating a sale - perhaps in the distant future.  There are a host of reasons why understanding the value of your business is good business no matter where you are. Various reasons for having a quality estimate of your business’s value include:

  • Enterprise Score Card
  • Growth Financing
  • Business Continuation Planning
  • Leadership Team Incentive Comp.
  • Succession Planning
  • Transaction Support
  • Litigation Support
  • Strategic Planning
  • Tax Strategies
  • Property & Casualty Insurance Planning
  • Co-Owner & Partner Buy-Sell Planning
  • Exit Planning
  • Retirement Planning & Estate Planning

What drives a business’s value - and what can be done to increase that value?

Among a group of companies in the same industry, of roughly the same size, public or private, business values range widely.  For an owner interested in realizing the upper end of the applicable value spectrum, there are drivers of business value, beyond profit level, which are critical to understand and focus on.  It is often helpful to benchmark your company across those value drivers to develop an objective assessment of strengths and weakness and highlight those areas of focus which might drive the highest level of value enhancement. Developing a discipline around value driver assessment and benchmarking over time can prove very beneficial in improving business operations, reducing risk and enhancing value.

The mission of Arete Advisors is to help business owners and executives grow, protect and enjoy the value of their life’s work.  Learn more about all of our business advisory and wealth management services.

Let’s get started.