Back to News

Understanding Your Business’s Value

July 20, 2017


by: Blake Ethredge, CPA/CFF, CFE, CVA

Would you ever invest a substantial amount of money into one company and not track the value of that investment over time? Well, if you own your own company then you are probably guilty of that. Most small business owners are more likely to treat their company as their baby rather than as an investment, when in fact it is just a non-liquid investment.

Business owners need to start thinking of their ownership in a privately held company as an investment. You should be able to answer the following questions. If you can’t, you need to consult with someone who can help you.

• What is my business worth today?
• How can I increase my company’s value over time?
• Can I sell my company today for what I need to retire on?
• What portion of my net worth is represented by my business ownership interest?

Don’t be shorthanded when it’s time for you to retire. Start working on these questions now and be ready for that day to come. Give our team a call today to help.