In many cases, your business will represent the most significant asset on your personal finance statement. Unfortunately, the value of your asset can be very difficult to calculate. You can’t simply turn on the television or look it up on the Internet, as you would with a publicly traded stock.

Rather, determining the value of a closely held business is a combination of:

• Analyzing the financial results of the business,
• Examining the business’ assets and
• Evaluating the likelihood of future successes.

This can be a very in-exact process. There are some specific reasons and ways to determine your business’ value.

In this guide, we’ll help you:

• Understand the importance of a business valuation and whether a formal or informal valuation makes sense for you,
• Learn three methods for valuing a business and
• Answer key valuation questions that can help you create an informal business valuation of your own.

Why would I need a business valuation?

A business valuation helps establish a baseline value for your business which enables you to create more informed financial goals, business strategies and even marketing objectives. It can help you, as a business owner, plan your personal retirement, understand your company growth and succession plans and help ensure the proper protection of your most valuable asset—your business.

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* Please note: The estimated value report shall not be used for any purpose with state and/or federal taxing or other authorities. As an estimate, it is not to be used to establish that a value is intended to be exact and/or having a binding legal effect or to determine adequate (as opposed to minimum) levels of life or business insurance coverage. The estimated valuation report is not to be relied upon for purposes of the sale of a client’s business, calculating estate or gift tax obligations, calculating income tax obligations and other taxes or any other purpose requiring a precise or definitive valuation. Estimated value reports are provided through BizEquity, a third-party vendor of Minnesota Life Insurance Company, an affiliate of Securian Financial Services, Inc. This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional. Financial Professionals do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation. Securities offered through Cetera Advisor Networks LLC (doing insurance business in CA as CFGAN Insurance Agency LLC, CA Insurance Lic# 0644976), member FINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Tax & Financial Group is independent of Cetera. 20240200185 DOFU 02/2024

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or advice. Securities offered through Cetera Advisor Networks LLC (doing insurance business in CA as CFGAN Insurance Agency LLC, CA Insurance License # 0644976) member FINRA/SIPC. Advisory services offered through Cetera Investment Advisers LLC, a registered investment adviser. Tax & Financial Group is independent of Cetera. Tax & Financial Group – Headquarters: 4001 MacArthur Blvd., 3rd Floor, Newport Beach, CA 92660 – (949) 223-8100 – www.tfgroup.com - The views depicted in the material are for information purposes only and are not necessarily those of Cetera Advisor Networks. They should not be considered specific advice or recommendations for any individual. Neither Cetera Advisor Networks not any of its representatives may give legal or tax advice. A diversified portfolio does not assure a profit or protect against loss in a declining market. 20240201171 DOFU 02/2024 - 20240304233 DOFU 03/2024