Article Link: http://exchangepress.com/article/valuing-your-child-care-business-guidelines-for-selling-your-center/5015156/
Owning and operating a successful child care company takes a lot of time, talent, and hard work. Most owners have invested their heart and soul into their business not to mention cold hard cash. They understand the business of child care but often don't know the value of the business they have built. Business owners can usually benefit from knowing the value of their company. Even non-profit child care organizations, which do not have owners but a Board of Directors, may, from time to time, need to value their organization.Reasons for Valuing Your Business
Here are some of the events that may trigger the need to value a business:
- Gifting the company to a family member
- Borrowing money from a bank
- Strategic planning
- Finding investors
- Buying out a partner
- Selling the business
Types of Valuations
There are many different values you could assign to a company. The purpose for the valuation can help determine which valuation method you would use.
Book Value
The book value of a business is the value shown on the company's balance sheet as the Owner's Equity or Net Worth. The balance sheet lists the assets, liabilities, and equity of an organization. The Owner's Equity is equal to the value of the company's assets less ...