What is your business worth? With the acquisition or sale of a business, this should be the first question asked. Without this answer no one knows the amount of dollars needed to change hands to pay the estate tax, to develop a retirement strategy, or determine if the asking price is too high or low.
A business that is undervaued cheats an owner of equity developed during the long struggle it takes to build a company. An inferior valuation may result in too much tax paid by an estate, the basis transferred to beneficiaries may be far below a fair value, or there could be money could be left on the table by the seller. A business value is relative, not fixed. It fluctuates and varies in part due to the actual transfer of ownership or the conditions surrounding the transfer. Relying on a competent outside appraiser may dispel these concerns.