4 How Does a Business Valuation Strengthen a Business? Knowledge is power. If you know what a business is really worth, and know that that valuation has been completed by
an unbiased professional, it becomes a tool that allows you to
keep ahead of your potential purchasers and your competitors. It also gives managers and shareholders a way of measuring achievement, profit, loss, and so on – information almost as valuable as the business itself.
The four key questions an owner needs to answer Any valuation needs to answer four key questions in order to arrive at a business valuation that is accurate, reliable, based
on the correct criteria and up-to-date information, and would stand independent assessment by an impartial third party. 1. What is the primary purpose of the valuation? What is at risk? Business Valuation is the essential process that helps an
entrepreneur understand how they are performing. As Warren Buffet has put it, business valuation is the heart of investment 61
