How does one go about determining the value of his closely held business? There are many ways to make this determination and in all too many circumstances, the valuation is given little or no consideration by the business owner. Not knowing a business’ value can lead to improper estate planning, a poorly written buy/sell agreement, and a lack of planning regarding the business owner’s retirement. If this is the situation regarding your closely held business, give this article your undivided attention as we will explore my favorite method of valuing a closely held business (a business that is not publicly traded). If you are just starting a new business. please read this article and gain from it the importance of developing a strategic plan and thinking beyond it’s normal day-to-day operations.
