Charlotte NC Business Valuation
Understanding the Value of Your North Carolina Company
Knowing the true value of your North Carolina business is invaluable. Your business will navigate through many financial events throughout the business lifecycle. And throughout these events, business valuations will be there to provide the crucial support and guidance needed.
There is so much more to your business than the simple numbers on your balance sheet. And a professional business valuation, or business appraisal, will demonstrate just that. It is a process that determines a business’s current most accurate economic value. A business valuation will analyze your business’ assets, earnings, growth, losses, goodwill, intellectual properties, and more. Business valuations will provide you with the essential information that you need, helping you to stay confident and knowledgeable no matter what comes your way.
Know more about what North Carolina business valuation does for you with our article what is a business valuation.
Why Grow Your Business in North Carolina?
From Lowe’s to Hanesbrands to BB&T, some of the biggest companies in the world call North Carolina home. When you understand the strong benefits this state brings for its businesses, it’s easy to see why.
North Carolina State incentive programs
Once you have registered your new business in North Carolina, you will be met with several types of state-supported incentives. One specific incentive specifically for new North Carolina businesses are the North Carolina Opportunity Zones. A part of the Opportunity Zone program, this incentive provides new NC businesses with temporary tax deferral, permanent exclusion on taxed income in the long-term, and step-up in basis for capital gains that are reinvested. This is just one of the many incentives North Carolina uses to support its business.
Strong workforce and education
There are 54 colleges and universities, 17 of which are public, and 58 community colleges across the cities in North Carolina. As such, there is no shortage of freshly educated workers graduating from North Carolina’s award-winning colleges each year. With such a strong education system and workforce, the worker pool never runs dry. Thus, North Carolina’s businesses are able to enjoy an extensive selection of potential employees. New workers bring new ideas, perspectives, and innovation to the table and keep your NC business ready for anything.
Also, read our article obtain a business valuation before you sell your business.
Low cost of living
With lower living costs than the natural average, these low costs make doing business in North Carolina even more smooth and pleasant. Higher flexibility, better comfort, higher profits, and increased ability to cover expenses come with low costs. The low cost of living also brings a high quality of life, and North Carolina’s strong communities are ideal for supporting the growth and success of local businesses.
The city of Charlotte holds as a proud home to the fifth-busiest airport in the United States. North Carolina also boasts four major airports with 72 public airports in total, a large-scale highway system, and two seaports. When your business finds its home in North Carolina, the rest of the world will always be within reach. It doesn’t matter whether you are reaching a domestic or international audience.
Know what business valuation services bring to your North Carolina business with our article on the top 7 benefits of getting a business valuation.
When Does Your NC Company Need a Business Valuation?
A Raleigh business valuation will act as solid insurance to ensure your North Carolina business is ready for anything. Business appraisals will ensure that you are prepared for the numerous potential financial events your company will encounter during its business lifecycle.
Your North Carolina business may need a business valuation report in the following scenarios:
- You are entering a merger and acquisition deal
- You are looking to secure investment and need to represent your business’ value accurately
- You are planning to sell your business or navigating unsolicited offers to buy your company
- You are working with estate planners and need to represent your business accurately to IRS valuation standards
- You are working with divorce proceedings
- You need to know the value of your business to report to the IRS for financial reporting purposes
- You are settling an ownership dispute and need the true settlement value
Selling your business? Read our article on understanding add-backs when selling a business.
What are the Different Business Valuation Methods?
No two businesses are exactly alike; therefore, there is no one singular one-size-fits-all method for business valuations. When working with Business Appraisal FL|GA|HI, we will deep-dive into your North Carolina business’ inner workings to truly understand your business’s unique scenario.
Here are a few of the different business valuation methods we may use when valuing your North Carolina business and what the calculations involve.
Discounted cash flow method
This method is often used when securing investment and buying or selling a business and is considered by many to be the most accurate valuation method. The discounted cash flow, or DCF method, will demonstrate the current value of a business based on future projected cash flows, as well as the investor’s expected rate of return and how much equity the investor will receive for the investment.
Investors frequently prefer the DCF method, which is crucial for larger companies and the investors, buyers, and business sellers involved.
As a straightforward way to value a business, the assets-based method will determine the value of your business by analyzing the value of both your tangible and intangible assets.
When you add up the value of your tangible assets, such as inventory, equipment, and sales to the value of your intangible assets like reputation, employee knowledge, and trademarks, a strong representation of your finances becomes clear. At Business Appraisal FL|GA|HI, our certified valuation analysts will always determine your intangible assets, or goodwill, with the utmost precision and accuracy.
Learn more about goodwill, or intangible assets, and what it means for the value of your Raleigh NC business.
Business comparable method
Similar to how the value of a home is determined by comparing market value, the business comparable method is determined by comparing your business to other companies of similar size and standing.
This method often makes mistakes when business owners compare businesses of greater or lesser value to the company at hand. In accordance with this potential issue, the expert business appraisers at Business Appraisal Florida will always only compare the market value with the most relevant similar Charlotte businesses, only providing the most accurate results possible.
These three certified appraisal methods just scratch the surface of the many methods that can be used: dive deeper into the different methods of Charlotte, NC business valuations with our article on the different methods used to evaluate your small business worth.
Business Appraisal FL|GA|HI is a Trusted Resource
Law firms, accounting firms, business brokers, and wealth advisors contact us for their clients’ defensible business valuation needs. Your third-party advisors and fiduciaries have trusted us for over 20 years.
Knowing the Worth of Your Charlotte, North Carolina Business.
No matter your business valuation reason, reach out to BA FL|GA|HI today for a free, confidential consultation with our valuation experts to discuss your situation, the valuation process, the methods of valuation, and if our business appraisal services are right for you.