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Know What The Business Is Worth, And Why.
A supported view of value built from clean books, for a partner transition, an ownership change, long-range planning or a sale you can see coming, with the reasoning written out so others can follow it.
Business Valuation For Michigan Owners
Many owners carry a number in their head for what the business is worth. Often it came from a conversation at a trade show or a figure a competitor supposedly sold for. The trouble starts when that number has to hold up in front of a partner, a buyer or a bank.
We give you a supported view of value, built from your own closed books and explained in plain language. Owners across Michigan and anywhere we work virtually bring us in as part of our CFO and advisory services, whenever an ownership change, a partner transition, succession planning or a transaction is on the way.
When Owners Need A Number They Can Explain
Valuation questions tend to arrive with a specific moment attached. These are the ones we see.
Clean Books Years Before A Sale
Buyers pay for earnings they can verify. If personal expenses run through the business, inventory has not been counted and reconciled, or three years of statements tell three different stories, a buyer either walks away or lowers the offer to cover the risk.
That is why our valuation work starts with the books. We normalize earnings, separating one-time and owner-specific costs from the real cost of running the business, and look at what the assets, inventory and working capital support. The earlier you start, the more time you have to fix what drags the number down, and our business financial planning and fractional CFO services are where most of that work happens. Clean financial statement preparation sits underneath all of it.
When A Formal Appraisal Is Required
Some situations need a formal appraisal from a credentialed appraiser: a court proceeding, certain lender requirements, or a tax filing such as a gift or estate tax return. Our valuation work is a supported, documented view of value for planning and negotiation, and we do not present it as that kind of appraisal. When your situation calls for one, we will tell you so plainly and help coordinate it, including getting the appraiser the clean financials they need.
Questions Owners Ask About Valuing Their Business
How do you arrive at a value?
We start from normalized earnings, meaning what the business reliably earns once one-time items and owner-specific expenses are set aside. Then we look at the assets, inventory and working capital, and at what the business needs to keep running. You get a value view with the reasoning written out, so you can see which assumptions move it most.
How far ahead of a sale should I start?
Earlier than feels necessary. Buyers usually want several years of consistent statements, and changes to how expenses are recorded or inventory is tracked take time to show up in the numbers. Starting a few years out gives you room to improve the result rather than just measure it.
Will a valuation tell me what a buyer will pay?
It tells you what the business can support and why. What a particular buyer pays also depends on their plans, their financing and the terms of the deal. A supported value gives you a starting point you can explain and a clear sense of which offers deserve a closer look.
Planning Work That Raises The Number
Budgets and scenario models that show how growth, equipment and hiring decisions change profit and cash before you commit.
Business financial planning in detail Fractional CFO ServicesMonthly results meetings and forecasts from an outside advisor, so the improvements a buyer will pay for get tracked month by month.
Fractional CFO services in detail CFO & Advisory Services OverviewFractional CFO work, business financial planning and valuation, from an outside advisor at your table.
Return to CFO & Advisory ServicesLet's Find Out What Your Business Is Worth
Tell us what is prompting the question: a partner, a sale or simply planning ahead. We will tell you what the valuation needs and whether a formal appraisal should be part of it.