We recently had the distinctive opportunity to interview Angela Sadang, CFA, ASA, and a Director in the Litigation and Corporate Financial Advisory Services Group at Marks Paneth LLP in Manhattan.Today, Ms. Sadang discusses how to determine what your business is worth, how to get a premium value for your business, using online software to value a business, getting paid for the potential your business has, and so much more!
Key Points from our Conversation
- The best way is to hire a qualified business appraiser to provide professional advice, especially if the value of the company will be used for transactional purposes or any other purpose that needs a supportable reasonable valuation.
- The purpose of the valuation drives the standard of value and the valuation methodologies used by a professional appraiser.
- The value of a business is improved with the lessening of risks related to reliance on a few customers, concentration on a few products/services, reliance on key people, limited supply of sources, old technology, and declining sales.
- Start-up and entrepreneurial idea businesses, with little or no revenues and operating losses are dependent upon private capital rather than public markets.
- Clearly, understanding the value of a company’s intangible assets is paramount to creating, maintaining, and growing value through better management and protection of these critical assets.