Business valuations are an important component of operating a company, especially for owners who plan to sell or merge with another business in the future. However, some small business owners who do not plan on making significant changes to their company may forgo valuations, which can have heavy implications for their estate planning.

Currently, only 43 percent of business owners who hire a valuation expert do so for estate planning purposes, according to a survey from TEC Worldwide. In addition, many who do value their companies may rely on professionals who are unqualified to conduct these valuations, such as certified public accountants, because they do not take into account all the factors that weigh on a company’s worth. Experts say the percentage of owners who conduct valuations is too low, which may lead to issues for the owner’s beneficiaries down the road for several reasons.