Most business owners use tax returns or financial statements prepared for tax purposes as the basis for the financial presentation of their business. As a result, the fair market value of assets are not reflected because of depreciation or acceptable deductions that are written off for tax purposes.

While this may be good for tax purposes, tax return financials do not reflect years of hard work in accumulating business assets. The business goodwill or intangible value, which represents a major component of what the business is worth in many cases, is not a consideration for income tax purposes and, therefore, not addressed in financial statements for tax purposes.

For a business to grow and expand in today's market, capital and financing are essential. The financial presentation reflecting what the business is worth can be a powerful tool in dealing with financial institutions, suppliers and customers.

A business valuation is essential when the owner is ready to consider selling the business.


Placing the right value on your business is essential in helping to achieve your goals.

RWS Business Valuations