When business owners sell their businesses, they need a business valuation expert to determine how much their business is worth. Sometimes a business valuation expert is hired by the company owner and sometimes his fees are paid by the buyer; either way, this is an in-demand career that can prove quite lucrative.
While many business valuation experts are employed by corporations that perform this service, the more lucrative option is to go into business for oneself. A self-employed valuation expert can set his or her own fees and conduct as much business as desired. This does require some start-up capital for business expenses, such as creating a Web site and promotional materials, but for many it is useful to the cost.
It’s mandatory that they provide financial reports and subject themselves to financial audit, for public listed companies or businesses that fall in regulated sectors. This reporting and expected transparency from businesses necessitates that asset valuation be carried out. Investors can then decide the value of a company, from the evaluation of its assets.
Option Valuation Considerations
When two companies are thinking of merging together or an acquisition is being planned, asset valuation is absolutely essential. This helps the people involved know the value of any company engaged in such a financial takeover or merger. It helps in ‘sizing up’ a business.
Most business valuation experts have an MBA and are veterans of the fiscal or business administration industries. They have significant experience in appraising the value of companies and their assets, and have a proved track record of issuing accurate appraisals. It is normally necessary to apprentice under an experienced expert who can show you the ropes and teach you the foundations of the career, for this to occur.