So, what is your company REALLY worth anyway?…..
A common question. How much is your company truly worth? It might be a good thing to know.
You can guess. You can come up with a methodology that best suits our belief. You can talk about it over dinner, or on the golf course, or at a bar (NOT a good idea) with our friends and colleagues, and through some intriguing dialogue and accumulated reasoning, come up with a number that best suits our thoughts. It would be a dollar amount showing what you have put into the business, what you believe out sweat and hard work are worth, and what a prospective serious and interested buyer would pay.
But…..is it right? And more importantly, is it realistic and does it make sense?
Value can be defined in some many ways, many of which are pertinent to that conversation, but not so correct when it comes to the topics of insurance, sale of the company, actual value of assets, a distressed liquidation, enterprise value, or a transition to relatives with a change in a generation of family ownership and management. Each one of these areas may yield a different value for very different reasons. In simple terms, it is a bit like trading in your used car for a new one, versus selling the car on your own: the amount of the transaction and who is handling the sale are likely to yield very different amounts!
So, what is your company REALLY worth?
When it comes to value, why take a chance at missing the mark? You have worked hard for your living, building your company, turning up new clients and investing in new products. You have banked your livelihood on doing the right thing throughout the life of the company. Why take a chance with an invalid answer or an under-represented value for your needs, or for something so near and dear to you?
Mile Marker Business and Consulting Services, LLC IS NOT a valuation company or an appraiser, and does not profess to be that, but cares deeply in helping companies and clients make valid and informed decisions. Mile Marker works closely with trained, reliable, and experienced professionals who know what they are doing, who ask the right questions, who work to understand the purpose of your value request, and (here is the most important point) have your best interest at heart and want your company represented correctly! It is one of the same principles on which Mile Marker was founded: focus on CLIENT NEED.
Why not consider your company’s value, and what it is truly worth? If for any other reason, knowing the answer places you in an informed position, and likely helps with how you make decisions regarding operations, strategy, investment, and allows you a strong place at the table when you consider your long term or exit strategy!
Let’s start a conversation! The Mile Marker is a great place to stop and design a strategy for VALUE.
david.alexander@milemarkerbusiness.com
