What Is a Business Valuation?

You may be confused as to what the difference is between a business valuation, a business evaluation and a business appraisal. An appraisal and a business valuation are in essence the same: placing an educated calculation of the market value of a present operating business. A business valuation can also provide the value of a future start up business.

When the term evaluation is used, as opposed to business valuation, it is primarily used in the context of management and measurement. It is an overall assessment of a given business, tracing its effectiveness. A business valuation is more concerned with money, assets and liabilities. A business valuation may be required for many different reasons, including investment analysis, capital budgeting, merging or acquiring another company, financial reporting, litigation or tax reporting. Additionally, a business valuation may be requested if the owner of an entity is interested in selling a property or getting a loan for a startup company.

A neutral third party must conduct a business valuation, and they are usually Valuation Analysts. A professional business valuation must offer results that are accurate, prompt and cost effective. Years ago, it was very difficult for a company to get a proper business valuation in a reasonable amount of time. Thanks to the internet and state-of-the-art technology, the turnaround time can be a matter of a few days.

For a trustworthy third party company to handle your business valuation project visit Halas.com. The Halas Business Valuation System has been working for small and larger companies alike, since 1985. HBVS has provided consulting services for business owners, prospective buyers, CPA’s, accountants, lawyers and investors. All information is kept confidential and the company does not charge for a preliminary analysis. Contact us for more information.