There are a lot of ways a business appraisal can help
business owners. Take a look at why you should consider getting one.
For many business owners, business appraisals can provide
vital planning information and help mitigate risk. Consider what it may be able
to do for you:
·
Establish
a verifiable value for your business. This can show whether assets have appreciated at a reasonable rate. If not, you may need to adjust your
firm's strategy.
·
Create
documentation to support new financing. Lenders need
strong evidence that their loans are properly secured. A business appraisal can
supply that evidence. An independent evaluation of business assets may also
encourage lenders to offer favorable interest rates.
·
Set
a reasonable selling price. Without a detailed and defensible
appraisal, owners selling their businesses sometimes entertain unreasonably low
offers. On the other hand, an appraisal can keep owners from overpricing the
firm and thus discouraging potential buyers.
·
Avoid
litigation after a death. What happens if one owner dies or
otherwise leaves his or her share of the business to others? In some cases,
litigation follows. To ensure that the remaining owners' interests are
protected, the business needs to be appraised beforehand.
·
Support
proper estate planning. If your estate is audited, the IRS is
more likely to accept valuations that include a clear and reasoned appraisal.
In fact, if discounts are adequately supported by an appraisal, estate taxes
may be reduced.
·
Figure
out capital gains. For example, if you inherit a business
from your father and decide to sell it, the business can be valued as of the
date of your father's death. A good appraisal can help establish a supportable
value for the business and may result in lower capital gains taxes.
Contact our office at (518) 798-3330 if you have questions about selling your
business.
