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conducting a business valuation

Determining the value of your business is crucial for a number of reasons, especially if you are trying to grow and gain the attention of investors. But unfortunately, this process can be a bit complicated. While using a business valuation calculator is simple and it is easy to find a number of calculators online, figuring out what to input into these calculators can be difficult. Plus, we recommend not immediately trusting the results of a random online business valuation calculator.

In this article, we discuss what you need to know to successfully use a business valuation calculator, as well as how you can receive professional help with finding an accurate valuation for your company.

Using a Business Valuation Calculator

As mentioned above, we recommend not basing your official business valuation on a valuation calculator you find online. That being said, these calculators can be used as a rough starting point in determining the true value of your business. In the end, we recommend consulting valuation experts to determine the actual value of your business, but we’ll discuss that at the end of this article.

To get a rough estimate of your company’s valuation, you’ll need a lot of company information, such as past earnings, expected earnings, industry details, and more. The following is some of the most crucial information you’ll need:

  • Past annual earnings
  • Anticipated earnings
  • Estimated level of risk for your business
  • Excess compensation paid to owners
  • Expected continuity of earnings

Get Professional Help with Your Business Valuation

Accurately reporting the information listed above for your business can be challenging if you do not have an extensive accounting background. And reporting the right information can make or break your business valuation and thus the probability of investors taking interest in your company. So, we recommend seeking professional help with your business valuation to ensure you report the right information and set your business the right path to grow.

If you would like help with your business valuation from CPAs with decades of combined experience, please do not hesitate to reach out. With the full range of accounting services Allman & Allman APAC provides, we are equipped with the expertise for which you may be in need. Seeking guidance from our firm will provide you the opportunity to work with individuals armed with broad and deep financial knowledge, able to provide advice on a wide range of issues. As a full-service public accounting firm, our professional services will surely help you succeed and thrive. Please feel free to reach out to Allman & Allman APAC via email at [email protected] or via phone at 760-773-1120 to discuss your situation and find out how we can help you grow. We look forward to hearing from you.