Most family businesses get a formal valuation when they absolutely have to, like when someone wants to sell their shares, a legal dispute arises, or a specific agreement requires it. Family businesses tend to treat valuation as a one-time event. What if that’s the wrong approach?
When valuation happens irregularly, things tend to go wrong. Shareholders get attached to the last valuation figure and see it as “fixed”—even though businesses constantly change in value. Also, if the next valuation comes in different from the last one, shareholders assume something bad happened.
That’s why family businesses should treat valuation as a process. Learn what happens when families treat valuation as a process—and how it can help shareholders understand why the business is worth what it is.
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