If you own a business, having a go-to property appraiser within your network can prove beneficial. You never know when you might need your business or its assets evaluated. Business appraisal services can offer many unique advantages. Below are just some of the many reasons why you might consider retaining a reliable company like RDC Appraisals:
- Determining your business’ value – At one point or another, your business will need to get evaluated—such as in the case of a merger, estate expansion, or partner buy-out. Regardless of what triggered your business appraisal, finding a company you can trust is key to getting a fair valuation.
- Gauging your financial health as a business –Business appraisal services are not only useful in determining the value of your company but also in checking its financial health. For instance, fully-depreciated equipment may no longer be claimed as an asset but may still be usable as collateral should you need a loan for expansion plans because they can still boost the asset portion of your balance sheet. Beyond this, business valuations also help you look at where your company stands financially while providing income forecasts.
- Seeking improvement – Valuations can also serve as a good overall diagnosis for your business, allowing you to spot areas where you may need to improve. A property appraiser doesn’t only provide you cold figures—they can also offer insight to put you in a better selling position or simply boost your net worth.
- Negotiating a merger – When negotiating a sale or a merger, it pays knowing exactly what your business is worth so you can be in a position of strength while putting your aces on the table. Knowing your worth will help you secure a good bargaining position with another company.
- Developing an exit strategy – Business appraisal services can also be useful when trying to develop an exit strategy. They help you figure out exactly where the business is heading and how long you can keep income steady. This will help you strategize for the future and decide whether it is smarter to keep the business or sell and move on. This is especially true for businesses with a finite lifespan.
- Buying out a partner –Business partnerships always begin with the best intentions. However, certain conflicts sometimes ensue and good intentions are sometimes not enough to keep a partnership going. Business valuation can help you determine an equitable buyout that is fair to all parties involved.
- Tax planning –Business appraisals can also help you determine how you can take advantage of different types of tax breaks or use tax shelter options to better manage the tax obligations of your business.