At one time or another, each Ohio business owner will begin to wonder exactly how much his or her business is worth. There are a variety of reasons that this thought process will come about, including formulating answers to shareholder questions, purchasing or selling parts of the business or equipment, possible retirement or even estate planning. Having a good understanding of the value of the business is often necessary for your business planning purposes.
First of all, if you have shareholders invested in your business, it is likely that they will want to be kept informed. They are often interested in the actual cost involved in doing business as well as the actual income received. This is often in addition to the dividends that they expect to be paid. An accurate valuation of the business can help to minimize potential shareholder disputes and conflicts.
There is also the possibility that you may decide to sell the business at some point. Potential buyers will be interested in both the cost to operate the business as well as the potential income. Again, an accurate valuation will help in the selling process.
Finally, it is usually necessary to include the business as a part of your estate plan. In this case, an accurate valuation of the business will aid in deciding how to distribute your estate. This valuation will also assist in addressing potential estate tax concerns.
There are numerous business planning concerns that can be addressed and even prevented by having a thorough understanding of the value of your Ohio business. Such an analysis can assist in overcoming shareholder disputes as well as valuing the business for sale or estate planning purposes. The experienced attorneys at Dinn, Hochman & Potter, LLC, can assist in deciding what information is important and analyzing the information for your planning purposes.