BUSINESS VALUATION

By Tom Cobery
In November 22, 2016

Most owners of a business are guessing at its value to an outside buyer. They may have an idea or can guess at it, or more specifically, they know what they want for the sale of their business. Unfortunately, very often, what they want does not relate to what the business is worth.

Owners should have a valuation of their business completed every three to four years—more often if they are contemplating a sale in the near term. The valuation should be performed by an outside industry expert, one who is familiar with market trends and values. By having a valuation done, the owner can now get a feel for the value of their business and whether it meets their needs.  Among other things, valuations take into account current market conditions, industry specific methodologies and industry trends. These items are dynamic and usually in a state of flux, but the valuation can give a sense of a range one could expect if a sale was to occur and whether that value would meet their needs.

If the valuation is less than what the owner wants or needs, then steps can be taken to help increase the value. The outside professional can guide you through areas that might need improving so that you can realize your expectations. The owner needs to be a realistic seller.

If you want to chat, give me a call at 703-837-1095 or e-mail me at tcobery@idealliance.org.

Tom Cobery

Dealing with the day-to-day needs of running a busy printing operation often leaves company leaders little time to plan for the future of their enterprises on their own. Tom works with chief executive officers and senior management executives in the Tag and Label Industry to develop growth opportunities through strategic transactions, new markets, or new service opportunities. Available for consulting on individual projects, he can also be engaged to serve as an Advisory Partner, helping executives guide their company into the future, serving as an impartial sounding board for ideas, and working with them to set the right course for continued growth and greater profitability. Tom’s personal experience as a Tag and Label Industry company president and chief executive officer, plus his extensive networking with other industry executives through his volunteer leadership activities with the Tag and Label Manufacturers Institute (TLMI) give him a unique perspective on the tough issues today’s company leaders face in this specialized segment. Companies engaging Tom will find his insight and independent advice an invaluable asset in helping them achieve their growth and profitability goals. More than a consultant, Tom Cobery wants to be your trusted Advisory Partner.

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