✈ April 12, 2017, Avicor Aviation Inc.
When someone talks about having their business valued, the reason that typically tends to come to mind for most people is that the owner must be thinking of selling.
Getting a valuation of an aviation business is definitely a great place to start if selling the business is the goal. A valuation provides an owner with a realistic understanding of what the business is worth in the current market. It also provides a good point to begin the discussion with a potential buyer.
But there are a lot of other reasons that make it a good idea to know the value of your aviation business.
Reason #2 for knowing what your business is worth is that it allows for better corporate (and often personal) financial planning.
If you are an owner or partner in an aviation business, understanding now how much your business is worth can enable you to think about and plan for the future more effectively. Whether your intent is to continue operating the business for many years, or you are thinking about retiring or selling the business in the foreseeable future, if you know the value of your business, it can be a vital piece of planning out when you might want to retire or sell.
The third reason for finding out what your aviation business is worth is that a valuation report can be a very useful tool with bankers and financiers.
For example, if you are seeking a loan or line of credit it can go a long way towards securing financing. Many bankers really don't have an understanding of the dynamics of the aviation industry. A valuation report provides a full look at the company and will allow the banker or financier to learn both about your business and about the industry. Increased understanding can raise their comfort level with aviation and your business. And those who control the money always feel better when they see something professional and independent on paper!
Next week we will look at a few more good reasons to find out what your aviation business is worth.
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