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Valuing business assets when preparing to dissolve a marriage

On Behalf of | Dec 9, 2022 | Divorce

There could be a variety of complex topics to address and difficult choices to make when preparing to protect your future at the end of your marriage. If you own a business, it may be understandable to feel uncertain about the role this asset might play in the process or of the steps you can take to prepare for what comes next.

Taking steps to obtain the true value of your business assets could help you better understand what is at stake, but this can be somewhat complex at times. Seeking insight on your available options for business valuation methods may help you prepare to make informed decisions about the future of your Colorado business.

Valuation techniques

There are several different techniques used to value business assets, and the best path may vary in each situation. Some examples of your available valuation options may include:

  • Business assets: One of the most popular techniques may involve an asset-based approach, in which one calculates the value of a business by subtracting obligations from the overall worth of business assets.
  • Earning potential: Another approach may involve exploring the future earning potential of the company by evaluating previous yearly revenue numbers and accounting for cap rates in the specific field of business.
  • Market valuation: Another valuation technique could involve researching prices of recent business sales involving companies similar to your own, but obtaining enough data for this approach can be challenging at times.
  • DCF valuation: Discounted cash flow is another example of a prevalent valuating technique, and experts indicate that such a method may even account for factors such as inflation.

Obtaining the proper value of your business could prove essential to preparing for what comes next, as the information you obtain in this process may influence your decisions substantially.

The future of your company

Performing a thorough valuation may be just one vital step to take when preparing to protect the future of your business during the end of your marriage. Seeking guidance on the role your business will play in this process and in exploring all your available options may be integral to helping you develop a strategy that focuses on your preferences and needs. Such a strategy may play an essential role in preparing to safeguard your future and helping you approach the next stage of life with peace of mind.