Can my CPA help me assess the overall value of my business?

Published on Entrepreneur

Your accountant can estimate your company’s fair market value in excess of your tangible assets. He or she will start by examining your financial plan and then execute a discounted cash flow (DCF) analysis, a common but effective valuation method.

Another way your accountant can help nail down your business’s value is by deeply understanding what you do and the industry in which you operate. In so doing, an accountant can help the entrepreneur understand which aspects of the comparable companies drive their value, and can work with the entrepreneur to steer the company toward maximizing those aspects of their business.