One of the areas where valuations have been vastly under-utilised is as a management tool, particularly for family owned businesses.
We are constantly amazed at how few family business operators have an informed view on the value of their company. The owners often make business decisions and assumptions on exit and succession planning issues without having an informed starting point. In our opinion, all business owners should have a realistic view on the value of their business.
All business owners over 55 years old should have a valuation performed every few years. Once a valuation is established, then the business owner and their advisers can develop plans to increase its value and monitor their performance in increasing wealth.
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