Most Business Owners Don’t Know What Their Business is Worth
On average, 75% or more of a business owner’s wealth is in their business – but most business owners don’t know what their business is worth.
This issue is addressed in “Most Small Business Owners Don’t do the Math on Their Most Valuable Asset” an article recently released by CNBC. According to a study by M&T Bank, 98% of small business owners don’t know what their company is worth.
In the article, Travis Harms, who leads Mercer Capital’s family business advisory services group, commented, “People whose home is their primary asset want to know what it is worth. If you open up a brokerage account, you want to know how much it’s worth. You’d never give your money to a financial advisor who told you to trust them while they invest it and never report back to you on what it’s worth. Just because your business is not liquid wealth, doesn’t mean it’s not real wealth.”
The article goes on to outline why a business owner should always know what their business is worth – and recommends that business owners have independent valuations of their business on a regular basis.
We agree that business owners should always know what their business is worth because it is probably their most significant asset – but independent valuations can be expensive. As a strategic partner with Waypoint Private Capital, we help business owners determine the market value of their company – and it’s a free service we provide.
Link here to learn more about how we help business owners determine the value of their business – and identify ways to increase the value: What is My Company Worth?
By Bruce Skaistis
Corporate Performance Group and Waypoint Private Capital, a leading middle market investment banking firm, have teamed up to help business owners increase the market value of their business – and monetize maximum value from their business when they retire or sell their business. Learn More