Making More Money

As a business owner, you likely are always thinking about your bottom line. But there are certain situations where you may want a more detailed accounting of the worth of your business beyond what your profit or loss was for the previous day, week, or month. A financial reporting valuation can provide your company with the information it needs to make the right decisions going forward or to stay in the good graces of any financial regulators. Here's why your company might be interested in a financial reporting valuation.

Figure Out What Your Company Is Worth Before Selling

Are you thinking of selling your company and exiting the business? You might have a target price in the back of your mind, but you won't really know exactly what your business is really worth without a full accounting. Any potential buyer of your business is also going to want to see a full evaluation of exactly where your financials stand. A financial reporting valuation can provide this much-needed data before you move forward with a sale.

Get Your Company Ready to Go Public

Is your company currently privately owned but you are thinking of going public and listing your business on the stock market? Going public will require you to disclose a lot of information about the inner workings of your business. That includes what is going on with your balance sheet. A financial reporting valuation from a professional will help you attract more initial investors for your initial public offering (IPO) and position your business well as you look to become a public company.

Figure Out the Financial Worth of Specific Intellectual Property (IP)

Do you want to hold onto your company in general but are considering selling off a specific piece of IP? A financial reporting valuation can help you figure out your asking price for any intellectual property you want to sell or lease out to another entity. Even if you aren't selling anything, a full valuation report can still let you know how much your new invention may have added to your company's bottom line from an IP perspective.

Many business owners are hyper-focused on the daily profit and loss report but don't forget to stay aware of the bigger picture. There are a number of situations where it might be a good idea or even legally required to provide a more complete financial picture of what's going on within your company, and that's where a financial reporting valuation can be of use. Contact a company that provides financial reporting valuation services for more information.