Nine Valuation Mistakes for Business Owners to Avoid

Evan Levine, ChFC, and Nainesh Shah, CFA, CVA

Whether or not a business owner plans to sell or transfer their business in the next few years, obtaining a proper business valuation is critical. A professional valuation performed by an accredited specialist, based on accurate modeling and sound numbers, is more likely to result in maximum financial returns for the business owner—either as an ongoing business or ultimate sale. This article examines nine common mistakes related to business valuations and offers some helpful guidance for business owners and their advisors as they navigate through the complexities of owning, selling, or transferring a business.