02/06/2025

Understanding What Drives Value in Your Business Valuation

The report provides crucial insights into what drives your organization's value

When business owners and managers receive a valuation report, their instinct is often to skip straight to the conclusion to find out the company's worth. However, the detailed analyses supporting that final figure frequently go overlooked, particularly when the valuation is for internal planning or financial reporting. Taking the time to delve into these underlying factors is a valuable exercise that can provide crucial insights into what drives the company's value.

Why the Analysis Matters

Valuation reports should be written in clear, easily understandable language so that the user of the report can easily grasp the concepts. Appraisers also may personally deliver the valuation report in draft form and then sit down with the client to review the report and answer any questions.

This serves two purposes. First, it ensures that the valuation is based on accurate information. If mistakes or omissions are discovered, this meeting gives the appraiser one last chance to revise his or her conclusion. Second, the meeting can provide insight into ways that owners and managers can maintain — or help grow — the company's value in the future.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.