Top Benefits of Getting a Business Valuation in New JerseyPublished May 21, 2019 | By Achim Neumann, PresidentPerforming a business valuation is essentially a check box that details the figures and information on the actual value or worth of your company in terms of income, assets, and your competition.If you are based in New Jersey, and haven’t performed a business valuation in NJ in the previous 12 months, then you should contact a business valuation professional as soon as possible. The outcome of getting an independent business valuation is crucial for you to know your current position, not just with regards to your competition but also where you are standing in the market right now.It is recommended that an independent business valuation in New Jersey should be conducted yearly in order to track growth. This is especially true with small entrepreneurs who rely on their business as their livelihood. The close link between their own personal wealth and to that of their company means they should always be on top of their business’ valuation.Here are the top benefits of getting a business valuation in New Jersey: Know Your Company’s True Value — You may think you know your business, but you would be surprised by how much you are missing out in terms of the asset calculation, bank account balances, expenses, future returns, etc.Should You Decide to Sell — If somewhere down the line you decide to sell your business, the business valuation would be a crucial document for the prospective buyer. This will give you a baseline for negotiations. Nevertheless, the potential buyer will conduct their own business valuation and both parties go from there, but showing yearly business valuations show you are, and have been diligent with the management of your company. Get On Top of Your Company’s Assets — In a successful business, nobody likes surprises. Getting all the facts is key to anticipate possible shifts in the market, personnel, and opportunities. Knowing all your assets is also important for insurance purposes. In the same vein, your insurer likes actual figures and not just estimates in order to come up with the right number for coverage. Make it Easier for Your Investors — When you are trying to sell your company to potential investors, you want to impress them with your preparedness. The first thing that the investor will look at is an independent business valuation from a certified professional. The valuation will also include the projected growth as a result of a funding infusion. Mergers and Acquisitions — A business valuation will enable you to identify the key growth indicators for your company. During mergers and acquisitions, the interested buyer would want to know the actual value of your business, including its assets and projected growth. Knowing the actual value would put you in a better position to negotiate for the best terms. You should understand that the potential buyer would quote the smallest number as possible. If you have no facts in hand, you might be persuaded into selling the company for much less than it’s actually worth.ConclusionThere are three main approaches to a business valuation. These are comparable analysis, discounted cash flow method, and precedent transactions analysis. For smaller companies in New Jersey, do at least one or two of these methods if your budget is limited. The important thing, however, is to make the business valuation a regular part of your annual routine.=====================A Neumann & Associates, LLC is a professional M&A and business broker firm having assisted business owners and buyers in the accredited business valuation and business transfer process through its affiliations for over 30 years. With an A+ BBB rating, the company has senior trusted professionals with a deep knowledge base in multiple field offices all along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions.