Do You Know the Value of Your Business?

If you were asked today, “What’s the value of your business?” would you have a confident answer?

For many business owners, determining value can feel overwhelming. There are multiple methods to consider, like book value; adjusted book value; Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) approaches; sales multiples; or capitalized earnings.

The method that works best for you may depend on your company’s unique characteristics. While some businesses are assessed based on assets and liabilities, others are driven by cash flow and profitability. Deciding where to begin is often the hardest part.

Why Should You Know Your Business Value?

Understanding your business’ value is a critical piece of your planning foundation. For many, the business is their largest financial asset. Knowing an estimated value is vital for creating a buy-sell agreement, planning for retirement, preparing an estate plan, or managing ownership transitions in the future.

A clear understanding of value helps reduce uncertainty and can minimize potential disputes between partners or family members. But formal business valuations, while accurate, can be expensive and time consuming.

A Practical Solution

Federated Insurance® offers Value EstimatorSM, a service designed to provide an informal business valuation. It’s a practical starting point that helps frame conversations with your attorney, accountant, and trusted advisors. Whether you’re considering business succession, estate plans, or an exit strategy, Value Estimator helps you understand what your business might be worth.

Take the Next Step

To learn more about how Value Estimator can support your planning efforts, contact your Federated® marketing representative. Start building a clearer picture of your business’s value today.

Value Estimator provides an informal business value estimate for general informational purposes and discussion with your professional advisors. It is not a formal appraisal and should not be used for tax, legal, or financial reporting purposes.

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This article is for general information and risk prevention only and should not be considered an offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.

Published Date: April 21, 2026

HR Question of the Month

Lowering Production Standards as a Reasonable Accommodation

Question

We have an employee with a disability who cannot meet the production standard of his position due to his disability. As a reasonable accommodation under the federal Americans with Disabilities Act (ADA), he is requesting that we lower the production standard for him. We have the same production standard for all employees in this individual’s specific position. Are we required to lower our production standard for him as a reasonable accommodation?

Answer

Employers may have to provide a reasonable accommodation to enable an individual with a disability to meet a qualification standard that is job-related and consistent with business necessity or to perform the essential functions of their position. A reasonable accommodation is any change in the work environment or in the way things are customarily done that enables an applicant or employee with a disability to enjoy equal employment opportunities.

That said, an employer never has to provide an accommodation that would cause undue hardship, meaning significant difficulty or expense, which includes removing an essential function of the job. An employer may apply the same quantitative and qualitative requirements for performance of essential functions to an employee with advisability that the employer applies to employees without disabilities. An employee with a disability must meet the same production standards, whether quantitative or qualitative, as a nondisabled employee in the same job. Lowering or changing a production standard because an employee cannot meet it due to a disability is not considered a reasonable accommodation.

However, a reasonable accommodation may be required to assist an employee in meeting a specific production standard. Employers with specific questions about processing an employee’s accommodation request should consult local counsel for legal advice. Additional federal, state and/or local laws may also apply.

Published Date: April 21, 2026

The HR Question of the Month is provided by Zywave®, a company wholly independent from Federated Insurance. Federated provides its clients access to this information through the Federated Employment Practices Network with the understanding that neither Federated nor its employees provide legal or employment advice. As such, Federated does not warrant the accuracy, adequacy, or completeness of the information herein. This information may be subject to restrictions and regulation in your state. Consult with your own qualified legal counsel regarding your specific facts and circumstances.