There are many Springfield, Massachusetts, couples who are not only romantically involved but also partners in life and business. Happily married couples who own a business together will ordinarily be able to get along well enough when it comes to running the affairs of their company and, oftentimes, will be able to enjoy their profits together.
On the other hand, couples going through a divorce or separation, or even some other family or financial crisis, may either come at odds with each other or, for some other reason, have to figure out how to put a value on their business that they owned and operated together in happier times.
Putting a value on one’s family business is not an easy thing. Because there is no established market for the stock of a family business, it is hard to put a price tag on shares of the business, and thus know how to fairly divide it up. Generally speaking, couples who need to know how much their business is worth will have to hire an expert business accountant or evaluator in order to give a credible opinion the business’s value.
Still, there are some general principles one can keep in mind when estimating the value of his or her business. For example, a person can just look at the value of a business’s property and other assets like equipment and inventory to come to some idea of how much a business is worth. Looking at a business’s average annual revenue is another straightforward way to ballpark a business’s value.
If one wants to get a bit more complicated, then he or she can calculate a business’s average annual profits over time, say, 10 years, and use a formula to come up with how much that annual income is worth in a lump sum.