Chicago Business Valuation Lawyer
A business owner’s worst nightmare may be a divorce. A divorce splits all the assets in half, and businesses are no exception. Nothing could be worse than having an ex-spouse own half of your business. You’ve put so much time and money into this venture, and it would be devastating to have to give up half of it.
Once there is mention of divorce, there are several things to consider. Is the business a marital asset? Will one spouse buy out the other spouse? If so, how much is the ownership worth?
Before you can answer these questions, you’ll need to know the valuation of the business. How much is it worth? This isn’t something you can figure out in a couple minutes. There is a long process involved, as there are many factors that can impact the valuation of a business.
Experts are needed to calculate the fair market value of a business. Don’t try to come up with a number on your own. Knowing the true value can make your divorce proceedings easier. Seek legal help from a Chicago business valuation lawyer from Birnbaum Gelfman Sharma & Arnoux, LLC. We’ll obtain the right experts to value your business fairly.
Valuing the Business
A professional can help you determine your business’ fair market value. As a business owner, this is hard for you to do on your own. That’s because many business owners confuse sweat equity with fair market value. Your perceived business value may be a multiple of gross revenue or a multiple of net revenue. You can’t just apply random numbers to your business’ value. That’s not accurate at all.
The truth is that there is no set formula for valuing a business. No two businesses are exactly the same. There are many factors that impact the value of your company, which is why you need a qualified professional.
A business valuation is all-encompassing, looking at the business’ past, present, and future in terms of finances. It looks at what you’ve done in the past and where you’re projected to go to determine a fair market value. It;s important to take multiple years of revenues into consideration because of the ups and downs in the economy. A business may have done poorly during recessions, for example, but perhaps it’s done extremely well in other years. It’s not a good idea to value a business too high because then the business owner may pay too much to a former spouse to buy them out when the purchase price isn’t justified.
Contact Birnbaum Gelfman Sharma & Arnoux, LLC Today
When it comes to valuing your business, don’t just pull a number out of thin air. It’s important to have a realistic value on your business so you can effectively split it in a divorce.
Birnbaum Gelfman Sharma & Arnoux, LLC will find the best accountants and experts to determine the value of your business so you get peace of mind. To schedule a consultation with a Chicago business valuation lawyer, fill out the online form or call (312) 863-2800.