Frequently Asked Questions About Business Valuation (Part 3)

This is the last iteration of our Business Valuation FAQ series. Missed the other two parts? Click here!

When is the best time to get a valuation?

The best time is before you need it. Here are the situations where valuation creates the most value:

Planning horizon (3-5 years before exit):

●       Identify value drivers to focus on

●       Benchmark progress year over year

●       Make strategic decisions with value impact in mind

●       Avoid surprises when you're ready to move forward

Pre-transaction (6-12 months before sale or financing):

●       Establish realistic expectations before you're emotionally committed

●       Address value-reducing factors while you have time

●       Demonstrate credibility to lenders or buyers from first conversation

●       Negotiate from a position of documented knowledge

Active discussions (during financing or sale process):

●       Support your position with professional documentation

●       Counter lowball offers with evidence

●       Satisfy bank underwriting requirements

●       Reduce due diligence friction

The owners who benefit most get their first valuation when there's no immediate pressure. Ideally, this is when they can use the insights strategically rather than reactively.

What happens after I get the valuation?

You receive a comprehensive report you can use immediately for:

●       Conversations with lenders about financing or refinancing

●       Internal strategic planning and capital allocation decisions

●       Succession planning discussions with family or key employees

●       Benchmarking your progress year over year

●       Preparation for eventual sale or transition

Many owners schedule a follow-up consultation to discuss:

●       Which findings surprised them

●       What operational changes would have the most value impact

●       How to address any value-reducing factors identified

●       Next steps for their specific situation (financing, succession, sale preparation)

The valuation isn't an ending. It's a beginning. It's the moment you move from operating intuitively to leading strategically, with clear understanding of how your decisions impact the enterprise value you're building.

Some owners implement changes and request an updated valuation 18-24 months later to measure progress. Others use the valuation as the foundation for immediate action. They may use it for applying for financing, initiating succession planning, or beginning exit preparation.

What you do with the information depends on your situation and goals. But you'll do it from a position of knowledge rather than assumption.

Are you ready for your business valuation? Visit www.intelexit.com today!