Another year is over and you are reviewing the company's financial statements. You want to determine the company's performance so you look at the traditional indicators - profitability, liquidity, leverage, etc. While all important, do they show the true picture? Is there another number, not included in the financial statements, that is a better indication of the year's results? Isn't the year's results and their impact on the value of a company what you really want to know? We at McGowen, Hurst, Clark & Smith, P.C. can assist you in determining the value of your company.
Business valuations are prepared for a variety of purposes - possible sale/purchase, change of ownership, buy/sell agreements, lending requirements, tax and estate reasons, curiosity, etc. Each purpose can result in a different determination of value and requires an in depth analysis of the company, its customers, management, industry and more. Rules of thumb or "My competitor down the street sold his company for three times net profit" don't determine the value of your company. Each company is unique and has its own unique value. In fact, each company has several values!