According to the 2018 MassMutual Business Owner’s Perspective Study, 70% of business owners said that they frequently or often think about their business value. Unfortunately, that doesn’t translate into action for the majority of business owners who fail to conduct an independent valuation of their business.
Of the business owners who do conduct a valuation, the primary driver for doing so is to measure certain KPIs or determine if the business has sale value in the market. However, there are many other milestones in the lifecycle of a business where a valuation is necessary such as planning an exit, retirement, or distribution of an estate.
Recently, Alex Howard, Managing Director within Stout’s Valuation Advisory group, Ken Yancy, CEO of Score, and Lise Stewart, Director of EisenAmper’s Center for Family Business Excellence sat down for a panel discussion hosted by MassMutual on the importance for business owners to develop an accurate valuation for a business, specifically as it relates to succession planning. Topics discussed include:
Watch the full video now.