For most business owners, their company is their largest asset - often representing 70% to 90% of their total net worth. Yet many financial advisors build retirement and wealth transfer plans without ever obtaining a current, credentialed valuation of that asset. The result is a plan built on guesswork, subject to a rude awakening when the business actually goes to market or is transferred.
Business owners routinely anchor their retirement expectations to informal estimates: a rule-of-thumb multiple they heard at an industry conference, a number a banker threw out in a meeting, or simply what they think the business is worth based on years of emotional investment. These figures are rarely defensible and often significantly off - in either direction. An overestimate leads to inadequate retirement savings outside the business. An underestimate may lead the owner to delay a sale unnecessarily or underprice in a transaction.
A certified business valuation, prepared by a credentialed appraiser (ASA, ABV, or CFA with valuation expertise), gives the financial advisor a real number to plan around. It tells you not just what the business is worth today, but why - and which factors in the business most directly drive or erode that value. That insight is actionable in ways that a ballpark estimate never is.
A current valuation enables the financial advisor to build a complete picture of the client's wealth. With the business valued at a defensible figure, the advisor can determine how much the owner needs in investable assets outside the business to achieve their retirement income goals - assuming the business sells at or near its current value. If the gap is large, that information changes the savings, investment, and insurance strategy immediately.
Valuations are also essential for buy-sell agreements, succession planning, and key-man insurance sizing. Without a current value, a buy-sell agreement may specify a price that bears no resemblance to reality - a source of serious conflict when a triggering event actually occurs. Insurance coverage pegged to an outdated or imaginary value leaves the business and its owners either over- or under-protected.
Financial advisors who proactively bring business valuation into their practice differentiate themselves meaningfully. The conversation about valuation is a gateway to deeper discussions about exit timing, business improvements that would increase sale proceeds, tax planning strategies (like ESOP structures or installment sales), and estate planning for transferring the business to the next generation. These are among the highest-value conversations a financial advisor can have - and they require a credentialed valuation as their foundation.
At OneTriad, the ValuEdge platform makes it practical for financial advisors to obtain ASA-certified valuations for their business-owner clients quickly and affordably. The report is designed to be understood by non-specialists, clearly identifying the key value drivers and the range of supportable conclusions. It gives both the advisor and the client a shared, objective basis for planning that is built to stand up to scrutiny - whether in a future transaction, a legal proceeding, or an IRS inquiry.
Schedule a call with a ValuEdge expert and get your report within 24–48 hours.
Schedule a Demo