Business Valuation is a process and set of procedures used to estimate the economic value of an owner's interest in a business.

There are many reasons why business owners benefit from knowing the value of their business. Some benefits are obvious- for example, to assess an offer or assist in negotiations when buying or selling a company. However, a business valuation is a useful tool to owners who plan to maintain ownership over the long term as well. A valuation allows owners to have a benchmark on which to compare value year over year, set performance goals based on value drivers, identify strengths and weaknesses, and ultimately enhance value. The following is a list of additional ways in which a business owner can benefit from knowing the value of their company:

• Enhancement of the value of the business for exit planning
• Establish the per share value of an Employee Stock Ownership Plan (ESOP)
• Identify any tax benefits of converting from a C-Corporation to an S-Corporation
• Shareholder (ownership) disputes, investment, or buyouts
• Calculate funding of buy-sell agreement obligations
• Raise additional capital investments or financing
• Estate tax reporting
• Gift tax planning purposes
• Marital dissolution
• Value synthetic equity (stock appreciation rights, warrants, phantom stock plans, etc.)
• Establish economic damages or expose fraud