According to business exit strategist Andrew Karlen http://www.karlenstolzar.com/karlen.html, business valuation is an important place to start when thinking about transition in family business.

Passing a family business from one generation to the next, rather than through sale to a third-party does not diminish the benefit of or need for a comprehensive valuation.

Not all businesses take steps to get this done. But there are critical consequences for avoiding this important work.

A determination of value:

• Establishes your starting line and distance to the finish
• Tests your exit objectives
• Gives owners a litmus test

When you know how much value there is, you know how much you need to create to achieve your objectives. You then know where you need to concentrate your time and effort