Do you know how much your business is worth? If not, you’re not alone: many entrepreneurs across Arkansas and Oklahoma struggle to assign an accurate valuation to their business.
As a business owner, it’s challenging to separate yourself from the day-to-day demands of running a company and look at the bigger picture. Your days are filled with managing employees, hitting sales targets, and serving your customers. Running your own business is one of the most demanding jobs there is, and it leaves little time for you to zoom out and think about your long-term goals.
Whether you plan to sell your business before you retire, pass it down to the next generation, or something else, you should try to maintain a directional understanding of what your business is worth. Business valuation services play a vital role in this, working closely with entrepreneurs to determine the value of their business and provide strategic guidance around how this can be grown.
In other cases, a business valuation service may be called in to provide an objective third-party valuation of a business in legal proceedings, tax disputes, or divorces. Regardless of the reason you need a business valuation, it’s important you understand how they work. In this overview, we’ll explore how you can find a business valuation service in Arkansas or Oklahoma and outline some of the key considerations you should bear in mind as you search.
Business valuation services have a fairly descriptive name: they value businesses. These services are provided by accredited business valuation professionals.
To assign a value to your business, a business valuation service will perform a rigorous analysis. Your financial data will be scrutinized, and for more rigorous reports, valuation professionals may tour your facilities and interview key executives.
Following this initial data gathering phase, business valuation professionals will perform a series of analyses using different business valuation methods before arriving at an opinion on the value of your business.
Business valuation services typically offer several tiers of service. The type of service, and resulting report, that you need is driven by the reason you’re seeking a business valuation in the first place.
Here is an overview of the different types of business valuation reports available to businesses in Arkansas, Oklahoma, and beyond:
A business valuation professional can help you determine the most appropriate report for your circumstances. In other instances, your attorney, financial planner, or tax accountant may provide input and help you select a business valuation service.
In Arkansas, Oklahoma, and all other states, business valuation professionals typically hold dual Certified Public Accountant (CPA) and Accredited in Business Valuation (ABV) qualifications. Some professionals may also be Certified Valuation Analysts (CVA), which is a certification from the National Association of Certified Valuators and Analysts (NACVA).
Many accounting firms provide business valuation services, commonly as part of the Forensic, Valuation, and Litigation Support group. Working with a firm with a wide range of capabilities is important: depending on the situation, you may need a business valuation professional to testify to the value of your business in litigation.
The level of report you need, as well as the complexity of your business, will determine the fees associated with obtaining a business valuation. You’ll find that regional business valuation services in Arkansas and Oklahoma, such as HoganTaylor’s, offer a more affordable option than national firms while also providing a higher level of service.
Finding a business valuation service follows a similar process to finding any other type of professional service. You might start by asking your network for referrals. Professionals such as your accountant and attorney have likely worked with business valuation services before and will be able to advise you on the best option.
Once you’ve narrowed down your options, connect with firms you’re considering working with. Ask them about their process, accreditations, and experience valuing businesses similar to your own.
If you’re in Arkansas, Oklahoma, or any of the surrounding states and need a business valuation professional, you’re in the right place.
At HoganTaylor, our business valuation team has a long track record of providing valuation services to many privately held businesses across the region. Our experts are nationally recognized, bringing a robust, detail-oriented approach to business valuations that incorporates current best practices.
Our valuation team is part of our Forensic, Valuation, and Litigation Support group. This breadth of experience ensures our team is equipped to handle any valuation task, from supporting business owners in tax disputes to providing an independent valuation of a business during litigation or other legal proceedings.
To learn more about obtaining a business valuation for your Arkansas or Oklahoma based business, talk to a HoganTaylor expert.
If you have any questions about this content, or if you would like more information about HoganTaylor’s Forensic, Valuation & Litigation Support practice, please contact Clay Glasgow, CPA, ABV, CFF, CFE , Advisory Partner.
INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.