Smart Business Approach

Most business owners use tax returns or financial statements prepared for tax purposes as the basis for the financial presentation of their business.

As a result, the market value of assets are not reflected because of depreciation or acceptable deductions that are written off for tax purposes. While this may be good for tax purposes, tax return financials do not reflect years of hard work in accumulating business assets. The business goodwill or intangible value, which represents a major component of what the business is worth in many cases, is not a consideration for income tax purposes and, therefore, not addressed in financial statements for tax purposes.

For a business to grow and expand in today’s market, capital and financing are essential. The financial presentation reflecting what the business is worth can be a powerful tool in dealing with financial institutions, suppliers, and customers. A Business valuation is essential when the owner is ready to consider selling the business.

Purpose of Valuation

RWS has assisted business owners nationwide with the valuation of their respective business. The RWS database, which is used in valuing businesses, has been developed through thousands of valuations for business owners, business brokers, financial consultants, and lending institutions. Placing the right value on your business is essential for any of the following purposes: Sell your business at the Fair Market Value Provide a lender with Fair Market Value information for a business loan Plan for a merger, acquisition or stock offering Develop an estate plan or tax plan to protect your wealth Transfer of the business into a trust or create a succession plan Determine the value of assets and liabilities for a divorce settlement Assist attorneys in litigation Settlement of an insurance claim Set up an Employee Stock Ownership Plan (ESOP) Whatever its purpose, a valuation can play a key role in helping you achieve your financial goals.