{"id":225433,"date":"2023-07-17T01:00:21","date_gmt":"2023-07-17T01:00:21","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/how-atlanta-owners-can-measure-business-value-correctly\/"},"modified":"2023-07-17T01:00:21","modified_gmt":"2023-07-17T01:00:21","slug":"how-atlanta-owners-can-measure-business-value-correctly","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/07\/how-atlanta-owners-can-measure-business-value-correctly\/","title":{"rendered":"How Atlanta Owners Can Measure Business Value Correctly"},"content":{"rendered":"
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There\u2019s this comparative analogy about what makes something American that people like to use: \u201cas American as apple pie.\u201d But, I kind of think we should update that comparison to \u201cas American as starting a small business.\u201d <\/p>\n

Not as catchy, I know (or as yummy). But, it\u2019s just the truth. Small business ownership is the epitome of independence.<\/p>\n

Don\u2019t want to work for someone else? Don\u2019t want to depend on someone else to pay your bills? Don\u2019t want to follow someone else\u2019s rules and regulations? <\/p>\n

Then start something where you call the shots and own the profit. And that\u2019s what you did. You had a dream, and you made it happen. And your Atlanta small business, along with hundreds of thousands of others, are the spirit and backbone of this economy.<\/p>\n

So, when you\u2019re watching all those fireworks \u201cbursting in air,\u201d know that, in a way, it\u2019s celebrating people like you who have built something valuable.<\/p>\n

Your business has value in our way of life beyond the dollar signs it produces. <\/p>\n

There might come a time though, when you want to know just how valuable it is and how many zeroes are actually attached at the end. Say you want to sell your little empire or exit it and hand the reins over to somebody else. <\/p>\n

That\u2019s when you want to consider getting a business valuation. But when you do, you\u2019ll want to make sure the assessor is taking into consideration all the various aspects that affect business value for you. Even when the assessor is qualified, there are still elements of your business and the market you serve that might get overlooked in the process.<\/span><\/p>\n

Let me explain what I mean here\u2026<\/span><\/p>\n

How Atlanta Owners Can Measure Business Value Correctly<\/strong><\/span>
\u201cWhen things go wrong, don\u2019t go with them.\u201d – Elvis<\/i><\/span><\/p>\n

In our previous two articles, we covered what goes into a business valuation and why and when you might need one \u2014 from M&As to divorce. By now, it\u2019s apparent that a valuation can be an important tool for running your company\u2026<\/span><\/p>\n

So it\u2019s especially important to realize what could go wrong with one.<\/span><\/p>\n

Here\u2019s a look at some of the biggest potential trouble spots<\/span><\/span> to determining business value<\/span><\/span>. <\/span><\/p>\n

Devil in the details<\/strong><\/span><\/p>\n

A business valuation is a waste of your time and money if it uses wrong or incomplete models.<\/i> Let\u2019s go through these here so you can check them along the way \u2014 and never hesitate to question your valuation specialist. You\u2019re the one paying for this, after all. <\/span><\/p>\n

Generally, whether the valuation primarily examines your income\/earnings, market standing, or overall assets, it should address your company\u2019s non-operating assets and liabilities, taking into account past litigation, tax problems, interest-bearing debt (especially as rates rise), and owners\u2019 worth as related to the business. <\/span><\/p>\n

Among other possible <\/span><\/span>business value assessment <\/span><\/span>problems are: <\/span><\/p>\n