Why Accurate Valuation Matters
Knowing exactly what your business is worth isn’t just a nice-to-have; it’s a fundamental requirement for making informed financial decisions. Whether you’re considering selling your business, resolving a legal dispute, or seeking the right level of funding, an accurate and defendable business valuation is crucial. However, many business owners mistakenly rely on their accountants, CPAs, or banks to provide an accurate valuation. This is where things can go wrong.
Why Your Accountant, CPA, or Bank Isn’t the Best Source for Business Valuation
While accountants, CPAs, and banks play an essential role in a business’s financial ecosystem, they aren’t equipped to perform specialized business valuations. Accountants are experts in managing and reporting your business’s financial health, but a business valuation requires a different set of skills and certifications. Certified valuation experts possess a deeper understanding of market dynamics, financial modeling, and the specific methodologies required to provide a reliable and defendable valuation.
Bankers, on the other hand, are primarily concerned with your creditworthiness and risk profile when making lending decisions. Their focus is not on the complexities of a comprehensive business valuation but on risk mitigation from a lending standpoint.
Why Only Certified Valuation Experts Are the Right Choice
At Axis, we pride ourselves on having only certified valuation experts and financial analysts working on client valuations. Our team members possess the qualifications and experience to provide defendable valuation reports that meet the highest industry standards. This commitment to accuracy and reliability is why our reports are trusted for everything from informational purposes to legal cases, such as divorces, firm dissolutions, or loan buyouts.
Our certified valuations cover a wide range of business components:
Real Estate & Property: The buildings or facilities your business operates from.
Equipment: Owned or leased equipment, which can significantly impact overall value.
The Business Itself: In the case of mergers, acquisitions, or sales.
Who Uses Our Services?
Our valuation reports are sought after by a wide range of clients and industries, including:
Law Firms: For legal cases like divorces or firm dissolutions.
Banks & Mortgage Lenders: To assess collateral and determine lending amounts.
The IRS: For taxation purposes, ensuring compliance and accurate reporting.
Courts: In legal proceedings where asset valuation is critical.
SBA Lenders & Equipment Lenders: To secure loans or assess risks.
Any Entity Requiring Defendable Valuations: For situations where a third-party, unbiased report is essential.
Choosing the Right Type of Valuation Report
One size doesn’t fit all when it comes to business valuation reports. Depending on your purpose, you may need a different type of valuation. For example, a full valuation for a sale would look different from a valuation needed for tax purposes or an SBA loan. That’s why our team takes the time to discuss your specific needs and objectives. Once we have a clear understanding of your purpose, we can recommend the right type of valuation report and provide you with a clear cost estimate.
The Real Risk of Not Knowing Your Business’s True Value
Without an accurate understanding of your business’s true value, you are at a significant disadvantage. In fact, 8 out of 10 businesses fail to secure the level of funding they truly need to compete and grow. Why? Because most lenders will only extend loans based on verifiable, certified business valuations. Without it, your business may not appear as valuable as it actually is, which results in lower loan approvals and missed opportunities for growth.
Let’s Get Your Business Fully Valued
At Axis, we’re dedicated to helping businesses like yours unlock their true potential by providing accurate and defendable valuations. Don’t leave your business’s future up to guesswork or outdated financial statements. Contact our team today to schedule a consultation and learn more about how our certified valuation experts can help you gain the insights you need to make the right decisions.
And remember, stay tuned for our next blog post on how to get fully capitalized and secure the funding you need to grow and thrive.
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