Does getting a business valuation mean a wealthier retirement for your clients?


It should--and this topic has been discussed recently on a number of business owner blogs.   BVR isn't aware of any data that proves this point--no Level I inputs that we're aware of--but it seems that the type of business owner who would plan an exit strategy well enough to include valuations as part of the process would be savvy enough to do better when it comes time to transition out.

A valuation done by a qualified appraiser details the risks that suppress a company's value, in effect producing a game plan for the business owner to maximize that value. And that's even without a consulting engagement attached to the valuation a la Warren Miller's "Value Maps" or some other methodology.  Most valuation analysts agree that it takes a minimum of three years to reduce the identified risks and maximize a valuation.  Therefore, business owners who plan--and target the most value-enhancing strategies--come out ahead.

So, for now, a Level III input to support this professional judgement:   BVR believes that business owners who regularly assess the value of their businesses live happier--and richer--lives.

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