Nine Valuation Mistakes for Business Owners to Avoid

As baby boomers continue to retire and transfer wealth, the need for a professional business valuation will continue to increase. If you are a CPA or Attorney who advises business owners, eventually, you will have a client who needs to determine the value of their company. How valuations are calculated can vary significantly depending on the method of appraisal and whether the calculation was prepared by an accountant, CPA or other professional. Business Valuations are both an art and science. Not a one size fits all proposition.

Unfortunately, the complex valuation process is prone to a multitude of common mistakes, errors and omissions that can skew the final valuation figure and render the appraisal inaccurate and, in some cases, legally inadequate. In this article Evan Levine in the Jan – Feb Edition of CPA Journal, Evan Levine and Nainesh Shah highlight nine valuation mistakes for business owners to avoid.