Business Valuation: Understanding The Value Of Your Business

Business Valuation Services in Abu Dhabi can help you calculate not just the value of your business, but also gain a better understanding of all the other aspects of your business to help improve your products, services, and business at large.

The Importance And Benefits Of Business Valuation Services In Abu Dhabi

What Is Business Valuation?

A business valuation is a measure of how much your business is worth. This involves gathering and analyzing information such as tangible things that your business owns, finances, accounts, and liabilities. 

Trust Accounts Management conducts Valuations of several types, depending on the business industry and/or business entity. We review documents such as past financial statements, future financial projections, and payroll. Some of the criteria are very tangible, while others, such as your company’s reputation or trademarks, are more subjective—but these are still valid considerations when calculating your company’s worth.

When Should You Need A Business Valuation Service?

Mergers and acquisitions can be some of the most common reasons for a need for business valuation. However, here are some other reasons why it can be beneficial for your company:

  • When there is a change in stakeholders: Anyone with a stake or potential stakes in a corporation, such as new shareholders or possible investors, will want to see the company’s valuation, before forming an alliance. 
  • When you want to sell: If you sell your business, merge with another, or are acquired, everyone who’s part of the transaction will need to know your business’ value.
  • To price options for equity compensation: If you’re a young startup company and offer compensation packages that include equity and/or stock options, you’ll need your business valuation to price those options.
  • For financing reasons: Bankers and creditors will need to know your business valuation for loans or refinancing. Potential investors will need a solid grasp of the intrinsic value of your company before they decide to back you.
  • For tax purposes: The government may need to know the value of your business if it changes ownership. For example, If you sell your business below market value, the IRS may charge you a gift tax according to its own valuation of your business. You may also need a business valuation to file an estate tax return or bequeath your business as a gift.
  • For personal reasons:  If you’re going through a divorce, a business valuation is often necessary to fairly divvy up marital assets—any property acquired during the course of the marriage. If a couple disagrees on the fair value of a business belonging to one or both of them, their attorneys may enlist a business appraiser to calculate a valuation both parties can agree on. Business owners planning their estates will also need their valuation to decide how to fairly allocate their assets after death.

Determining the value of your business can prove to be complex and time-consuming, but the good news is that you don’t have to do it alone. Trust Accounts Management has specialization in providing Business Valuation Services in Abu Dhabi, Dubai that can help you with all your valuation statements and requirements. Click here to get in touch with an Expert!

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