How is a Business Opinion of Value different from a formal business valuation?
Category:
Selling a Business
Although both help owners better understand value, they serve different purposes. A Business Opinion of Value is generally prepared by a business broker to estimate a likely market range based on current conditions and comparable transactions. A formal business valuation is typically performed by a qualified valuation professional using recognized valuation methodologies and may be required for legal, tax, financial, or litigation purposes.
Understanding which approach best fits your situation depends on your objectives.
If you’re unsure which may be appropriate, I’d be happy to discuss the differences and help you determine a practical starting point.