Family-owned companies represent roughly 90% of all U.S business. Life events can impact not only your family, but also your business - and vice versa. 

Just like going in for regular checkups on your health and wellness, you also need to check up on the financial health of your business. 

Getting a business valuation can help owners plan for life’s more expected events such as sending a child to college or retirement, but can also help mitigate risks in unexpected life events such as divorce and splitting of large assets.

So, how will a business valuation prepare you for these events? 

Sending your child to college

Nearly 8 in 10 parents say saving for their children's education is harder than expected. College tuition isn't cheap and saving plans can get derailed when you're unsure of the cost of tuition at the school your child will attend.

Eligibility for financial aid is determined by income and an assessment of your assets up to two years prior to applying. Knowing the value of your business, your largest asset, will predict your child’s financial aid eligibility and help parents set goals for tuition savings. 

Divorce

For an entrepreneur or business owner, the business is often one of the most valuable assets in an estate.

This is also relevant in the case of divorce, where the distribution of assets and liabilities and anything spouses buy, build, or acquire during the marriage often includes a business. Not surprisingly, the parties usually end up having differences in opinions when it comes to the value of the business. A business valuation takes the emotion with splitting business assets out of the equation and presents an accurate, unbiased solution that will help both parties and the court make an informed decision on the business value.

The value of the business becomes a key factor in negotiating a settlement. The earlier you get a valuation completed and figure out how that value will be divided, the sooner you can move toward a reasonable settlement of the divorce. 

Retirement 

Few Americans feel confident about their ability to have enough money to live comfortably in retirement.

Did you know that 78% of small business owners want to use the proceeds from the sale of their business to pay for retirement? The problem is 98% of privately-held businesses know their value, implying owners generally have an uninformed estimate  as to how much they’ll eventually sell their business for. How can you know when to sell, what a reasonable price is, or if you can afford to retire without knowing how much your business is worth? 

For business owners planning to fund retirement through the sale of their business, an accurate business valuation is a critical starting point. In minutes, BizEquity provides you with an answer to the biggest question you need to prepare for retirement. Let us show you how. 

Secure your future and gain clarity so you’re prepared for life’s unexpected events. Perform an online business valuation today.