Business Valuation Basics | Maximizing the Value of Your Business
Published on by Harold Kremer, Daniel Schlachter, in Consulting, Video, Transaction Advisory
Can’t watch the video? Get the transcript.
In this video, Harold Kremer and Dan Schlachter discuss the fundamentals of business valuations and their critical role in planning, transactions, and long-term business strategy. A business valuation answers a deceptively simple question (What is the business worth?), but the process is nuanced, factoring in economic conditions, industry trends, financial performance, and purpose. Valuations are more art than science, and they’re tailored to each unique business – it’s not a one-size-fits-all approach.
The conversation also explores how valuations differ depending on their purpose, such as gifting, tax planning, or exit planning. Discounts for lack of marketability or lack of control may apply in certain situations, particularly when valuing partial ownership interests.
From an exit planning perspective, valuations help business owners understand their current position, what they need for retirement, and how to bridge the gap—considering both business value and personal wealth, as well as potential tax implications.
Finally, they talk through what goes into the valuation process and how valuations support mergers, acquisitions, and transactions. By analyzing several years of financial data and separating personal expenses from business operations, valuation professionals help owners see their business through a buyer’s lens. Beyond the transaction itself, valuation insights support due diligence, quality of earnings analysis, and post-transaction planning—ensuring business owners are positioned for both a successful sale and a secure financial future.
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You might also be interested in What’s My Business Worth? – a deeper dive into business valuations and the processes and approaches involved, how to navigate gift tax returns and the role valuations play, or how to plan your exit from your business and ensure its successful continuation.
If you’re interested in finding out more about business valuations and how they might benefit your unique situation, contact us for a free consultation with one of our top business valuation professionals. As always, they’re here to help.
