Ensuring The Price Is Right: The Importance Of Business Valuations

Ensuring The Price Is Right: The Importance Of Business Valuations“Price is what you pay; value is what you get.” These are the words of one of the most successful business investors the world has ever seen, Warren Buffet.

Behind this statement lies the suggestion that value in itself is not a tangible, quantifiable figure but rather the result of handing over the right amount of cash something. This is where business valuation services conducted by specialist forensic accountants prove their worth.

When disputes arise between shareholders, divorcing couples or separating business partners there can be long and difficult discussions as to how much a company is worth. Based on the individual’s standpoint, he or she will naturally attempt to drive the price up or down accordingly.

If it is a jointly run business in which one of the two owners wants to sell his share and move on, relations can quickly sour as both sides argue over price (in their attempts to get value). Likewise, in divorce proceedings, when entire families are involved, it can be difficult to bring matters to a smooth conclusion when there is so much emotion involved.

In these difficult situations, taking personal motives out of the equation is essential. As such, using independent business valuation experts such as those at Frenkels Forensics can pay dividends in not only making sure the right price is paid – one that represents good value for the client – but also in removing the stresses and strains that these negotiations can take on an individual, family or business.

Forensic accountants use technical and analytical skills to assess the price that ought to paid for a share of a business. This includes examining order books, stock, shares, financial records, assets and any other contributing factor to come to an accurate, fair and carefully calculated figure.

For expert help with a business valuation contact Frenkels Forensics for an independent appraisal.

Alternatively, if you’re looking for advice in any aspect of forensic accountancy, then do get in touch via Twitter, Google+, LinkedIn or by visiting our website www.frenkels.com

By Vitek Frenkel – find me via Google+.

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