According to a recent survey by Coopers & Lybrand, most fast-growing companies don't bother to get or maintain current valuations. That can be a costly mistake, since owners need to know exactly what their businesses are worth when they're considering selling out -- or relying on insurance policies to protect themselves against future estate-tax liabilities.
Does your company have a formal, current valuation?
| All companies | Companies that have considered or are considering sale | |
| Current valuation | 32% | 48% |
| Outdated valuation | 21 | 15 |
| No formal valuation | 47 | 38 |
Source: Coopers & Lybrand's Trendsetter Barometer, a survey of more than 200 growing companies with average revenues of $6.4 million, 1992.