Why valuation matters—even if you’re not selling anytime soon

At Stanaland Dodson & Associates LLP, we’re often asked this question in passing:

“Do you think my business is worth what my competitor got for theirs?”
Or,
“I’m not looking to sell anytime soon—but I wonder what I’d get if I did.”

The truth is, every business owner should know what their business is worth—well before it’s time to sell.

Understanding your company’s value isn’t just useful for Mergers & Aquisition or retirement—it’s essential for making strategic decisions that affect everything from insurance coverage to succession planning.

Why Valuation Is More Than a Number

When we talk about business valuation, we’re not just talking about a sticker price. We’re talking about:

• What your business would be worth to an outside buyer
• How you could increase that value before a sale or transition
• What your financials really say about your long-term health

And perhaps most importantly—how your value ties into your personal financial goals.

Not Planning to Sell? Here’s Why Valuation Still Matters

You don’t need to be heading into an M&A transaction to benefit from a business valuation. In fact, many of our clients are years away from selling—but they use valuation to guide:

✅ Succession Planning

Whether you’re transitioning ownership to a family member, a key employee, or a future buyer, knowing your value early gives you time to structure the deal, minimize taxes, and ensure continuity.

✅ Buy-Sell Agreements

If your business has multiple partners, a buy-sell agreement is only as good as the valuation behind it. We help clients align legal documents with real, market-based business value.

✅ Key Man Insurance or Estate Planning

You may need to justify the value of your business for life insurance, estate planning, or even divorce or litigation purposes. A CPA-led valuation gives your stakeholders a reliable benchmark.

✅ Capital Raising or Bank Financing

Lenders, investors, and bonding agents may all request financial documentation that reflects your company’s true market position. A credible valuation enhances your negotiating power.

What Drives—or Drags Down—Your Business Value?

We help clients identify the factors that boost or weaken their business’s market value. Some of the key drivers include:

• Clean, accurate financials (this is where reviews and compilations matter)
• Customer concentration (diversified client base = stronger valuation)
• Recurring revenue or contracts
• Owner dependence (the less the business relies solely on you, the higher the value)
• Systems, staffing, and scalability

If you’ve never examined your business through this lens, you might be surprised by what’s helping—or hurting—your long-term value.

When Is the Right Time to Get a Valuation?

We recommend considering a valuation when:

• You’re 3–5 years out from a planned exit or retirement
• You’re adding partners or transitioning equity
• You’re preparing for a merger or acquisition
• You’re setting up or updating a buy-sell agreement
• You want to benchmark your business’s performance and value trajectory

A good valuation isn’t just a one-time report—it’s a strategic baseline for your next chapter.

What Kind of Valuation Does My Business Need?

There’s no one-size-fits-all approach. At SDA, we help business owners choose the right level of valuation for their goals:

• Informal valuation: A benchmarking analysis to understand ballpark value and growth drivers
• Calculation of value: A limited-scope report, often used for internal planning or buy-sell agreements
• Comprehensive valuation: A formal, defensible report prepared for legal, estate, or transactional use

Our goal is always the same: provide useful, CPA-guided insight that helps you plan wisely and confidently.

What’s Your Business Worth—And What Could It Be Worth?

Whether you’re planning to sell, thinking about retirement, or just want a clearer picture of what you’ve built, a valuation is one of the smartest steps you can take.

We’ve helped clients across North Carolina understand, grow, and protect the value of what they’ve worked so hard to build.

📅 Let’s talk about where your business stands today—and where it’s headed next.

Stanaland Dodson & Associates LLP
Certified Public Accountants in Winston-Salem, NC
Serving clients “Beyond the Bottom Line” since 1984

📞 (336) 765-2817
📧 info@sdallp.com
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