High-asset Business Valuation Lawyers Bainbridge, WA
Valuing a business is notoriously hard, and that is where high-asset business valuation lawyers in Bainbridge, WA, come into play. This becomes even more complex when spouses who choose divorce are also business owners. Either spouse may be primarily concerned with their ability to continue owning and operating their business after a divorce. So, before deciding how to divide business assets, spouses need a full understanding of the value of a business.
The team at Robinson & Hadeed has the experience to help you through the process of valuing your business. Our goal is to advise our clients on how they can create property settlements that meet their needs and provide them with the financial resources to support themselves and their loved ones.
Methods of Business Valuation During Divorce
When spouses understand the full monetary value of business assets, they’ll be able to divide these assets and other marital property in a way that provides each party with an equitable share of the material assets. There are several ways for business valuation to be done and hear some of the most common ways that this could happen:
- Market value: Any business owner may be able to estimate the value of that business by looking at the purchase prices of other similar businesses that have recently been sold around their area. While the estimated market value may not provide a complete understanding of the financial benefits that someone could receive, it is a good place to start. Sometimes it may be difficult to get an accurate estimate because there are no comparable businesses with the same market that were sold recently. A market valuation may also be unable to address unique factors that can affect the value of a business, such as goodwill that has been generated throughout the years.
- Business assets and liabilities: A company’s value can be determined by adding up the value of the assets owned by the business and then subtracting its liabilities. Assets include tangible property, such as real estate, equipment, materials, and goods on hand. This could also include intangible assets, such as intellectual property or contractual agreements with other companies. Liabilities include debts owed by the business or ongoing payments such as rent, utilities, payroll, goods purchased, services received, and other expenses. This method can provide a good look at a business’s current value but it often doesn’t address the potential for growth or other changes that could come in the future.
- Income, earnings, profits, and growth: To better understand the current volume of business and how this value may change in the future, an evaluation may consider the business’s past income and future projected earnings. By looking at how the business may be expected to grow and increase in value, each party can fully understand the value of retaining ownership of the business assets.
Being a business owner and going through a divorce is hard, and that is why contacting high-asset business valuation lawyers in Bainbridge, WA is often a good idea to make sure you get what you need through a divorce.