While preparing your succession or estate plan, it can be helpful to value your family business both internally and externally.
You might wonder what that means — because you think your company has just one value. In fact, it can have multiple values depending on the valuation standard used. The different results can help you determine whether to keep the family business, pass it on to the next generation or sell it to an outsider.
Two common standards used in valuing a family business are: