We can go on-line and find out what almost everything we own is worth from our house to our furniture. One exception is the value of our largest asset, our business.
The purpose of the presentation is to show various methods of how retail fuel companies are valued. Understanding that a stock gifting value has a different value than a fair market sale value can save family businesses hundreds of thousands of dollars in taxes. The same is true for C-Corp to S-Corp conversions. In addition, a properly done cash flow valuation will give owners insights as to how to improve their businesses and create useful budgeting and measurement metrics to assist in process improvements.
Valuations are a key tool to better understanding a business and they can be used by marketers for several purposes including:
- Stock gifting for tax advantage succession planning
- Acquisitions to expand and grow
- Buy-sell agreements among partners
- Banking purposes to fund expansion and growth projects
- Conversion from C-Corp to S-Corp
- Forming employee stock ownership plans
- Budgeting and planning to improve processes
- Personal goodwill calculations
