Five situations in which the company valuation report comes handy

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Five situations in which the company valuation
report comes handy
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• A common query of most small businessmen is to
  know how beneficial it is to get ones business
  appraised or valued. While it is not an unknown
  fact that the data of a business valuation helps
  in better decision making, there are certain
  situations which demand authentic valuation of
  the business for legitimate reasons. Here are
  five such situations any small businessman might
  face which can be steered clear of with an
  authentic business valuation.

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While developing an exit strategy

• Needless to say it is quite impossible to take up
  the right decision while planning an exit
  strategy without the knowledge of the worth of
  ones business. A company valuation from an
  authentic valuation service provider helps the
  businessman to understand the direction the
  business is heading to and facilitates the laying
  down of alternatives of exit strategy i.e.
  whether to sell, or merge with another company or
  to make it public.

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While negotiating a merger

• The knowledge of the value of a company is a must
  for a businessman who is thinking of any merger.
  It would be extremely difficult to negotiate the
  price of a merger without the company valuation
  report. In fact, there is ample chance of missing
  out great opportunities if the company is
  under-valued during the merger. Another dimension
  which must not be neglected is the fact that the
  company valuation report also helps in attracting
  the best merger prospect, increasing the
  profitability of the business in the long run.

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While undergoing a partnership divorce

• The valuation report also comes handy in a great
  way when the company is undergoing a partnership
  buyout. The report provides the information which
  helps a businessman to determine the fairest
  buyout amount, thus, protecting him or her from
  getting under-paid. The valuation report might
  also reveal data which might make the separating
  partners reconsider their decision of divorce.

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While planning for taxes

• A sound tax planning demands comprehensive
  knowledge of the companys turnover and worth.
  The information derived from a business valuation
  is used to determine the areas where taxes can be
  broken legitimately. In fact, an online business
  valuation calculator also presents the data of
  taxable areas of the business, making the tax
  planning profitable. Such information helps in
  minimizing the tax burden to a great extent.

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While investigating domains with scope for
improvement

• When a businessman seeks to determine the domains
  of the business which have lagged behind from
  others and needs to immediately be improved, the
  document which comes in the handiest is the
  business valuation report. The report not only
  reveals the areas which need greater care, but
  also helps in understanding the trend of
  under-performance. The understanding, in turn,
  helps in taking proper precautionary measures.

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Valuation