Why is it important for me to understand how to valuate a business and how the company valuation was formulated?
As mentioned in the previous question, business owner’s often make an inaccurate company valuation that is either too high, or too low for the actual business value. Our business valuation software is designed to help each customer learn how to value a business, so they can potentially adjust certain aspects of their company that could maximize the business value when selling is decided upon. For a business person who wants to retire or find new business ventures, it is important to know the estimated amount of money that will be received upon the sale of the business. If this amount of cash flow is insufficient, it would be better to know prior to the sale of the business, because it will allow for the necessary company changes that will potentially increase the cash flow for a sale later on. We want to ensure that each business owner knows what they have going into a sale and what they could potentially have coming out of a sale. Why not understand how to maximize the potential value