Do I Need a Valuation Every Year?

No, you don’t need a full business valuation every year—but in many cases, getting one annually (or a streamlined update) is a smart move. The right frequency depends on your goals, your industry, and how much your business is changing.

Why This Question Matters

Your business isn’t static—and neither is its value. Significant changes in revenue, expenses, market conditions, or ownership structure can all impact valuation. For small business owners planning to grow, exit, or secure financing, staying up to date on business value is critical to making informed decisions.

Waiting too long between valuations can leave you flying blind when opportunities or risks arise—whether that's an unexpected offer to buy your business or a sudden shift in your financial performance.

Related Questions Clients Often Ask

• How often should I get a business valuation?

• Is an annual update enough, or do I need a full report?

• What if I just had a valuation last year and nothing major has changed?

• Do lenders or the SBA require a current valuation?

• How much does an annual valuation update cost compared to a full report?

Tips for Deciding How Often to Get a Valuation

If you’re wondering how frequently to reassess your business value, consider these guidelines:

Annual Valuation Updates Are Recommended If:

• You're actively growing or preparing to sell within 3–5 years

• You need valuation data for strategic planning or financial forecasting

• You're building a stock or equity compensation plan for employees

• You want to track value improvements from operational changes

In these cases, you can often request a calculation of value (a more streamlined, cost-effective version of a full valuation).

Full Valuations May Be Needed Less Frequently (Every 2–5 Years) If:

• Your business is stable and not planning any major changes

• You're using the valuation for internal benchmarking, not legal or lending purposes

• You already have a baseline valuation report and only need periodic checks

Always Get a New Valuation When:

• You’re applying for an SBA loan (SBA.gov) that requires current fair market value

• There’s been a major ownership or structural change

• You’re selling, merging, or acquiring another business

• You're involved in litigation, divorce, or shareholder disputes

  
  

Final Thoughts: Do You Need a Business Valuation Every Year?

You don’t always need a full valuation every year—but checking in annually with a trusted advisor can keep your planning on track, help you measure progress, and avoid being caught off guard. At Development Theory, we offer annual valuation updates that are tailored, cost-effective, and aligned with your long-term goals.

Want to learn more about which type of valuation is right for your situation? Book a Discovery Call today.