Countless business owners avoid going through a valuation due to having a misinformed or antiquated view of what occurs. Many believe incorrectly that the process of getting a valuation is intrusive, time-intensive, and expensive, but that was yesterday.
The reality is, getting a valuation of your business is one of the best things you can do, and if you find the right group to work with, is both cost-effective and painless. Even if you aren’t shopping your business around or considering starting the M&A process, the benefits that are associated with getting a practice valuation far outweigh the costs or any perceived inconvenience.
A valuation gives you insight into much more than just the price your business is worth. It can show you what areas of your business are strong and are providing high value. And on the flipside, it can also give you a sense of where the gaps in your business are and how you can bridge them. By benchmarking your business with a valuation, you can more effectively make decisions with the findings and results.
In the long run, getting a business valuation well before you’re ready to sell should be essential for those looking to establish an accurate picture of the state of their business. It will help you determine how best to position your business for growth and profit and identify the key drivers of growth that are needed to maximize your practice’s value. So, when the time comes to find a new home/buyer for your business, you’ll have already put in the work to make it all the more valuable and understand its value.
Luckily for advisors, specialized valuation services exist today, and 3xEquity provides easy access to an online valuation. Our Practice Valuation Optimizer provides instant equity value of a practice while giving you a more realistic estimate based on industry norms for valuation. And if you’re specifically looking to improve your firm’s valuation for M&A purposes, you can create reports after organizational or efficiency changes have been completed to determine how those changes affected the valuation.
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