An opportunity to sell or merge
You may find an opportunity to sell or merge which needs to be decided quickly. Having an up to date business valuation allows you to take advantage of opportunities.
Addition of a new owner
You may want to take on a new partner or LLC member, and you need to know the value of your business to determine the buy-in price.
Contemplating an exit strategy
You may be reaching retirement and you need to know the value of your business in order to construct an exit strategy. An exit strategy doesn't necessarily mean the sale or closing of a business. It could mean a restructuring. In any case, a valuation can help determine the strategy.
Expanding the business or capital raise is needed
You may want to expand or build new facilities, and taking your business valuation to the bank will help them make the decision to lend money.
Exit of partners or shareholders
You may need to separate from partners or shareholders, and you need to know the value to determine how to divide up the business.
A disaster situation
After a business disaster, it is very useful to have a previous business valuation to establish a benchmark against which to compare the value of the business before and after the disaster.
Divorce or other family issue
You may be dealing with a divorce or other family issue, and you need to know the value of the business as one piece in the discussion.
When working with related parties ie. family shareholders it is relevant to establish a valuation so the IRS does not question the sale or proceeds of the sale to the remaining shareholders triggering a gift tax audit.
Death or Disability
For example, the owner might die or become incapacitated. Having a current business valuation would help the family deal with the potential sale or dissolution of the business or even consider what value needs to be placed on a life insurance policy to cover unforeseen needs.