There are many reasons why you might want to place a value on your business.

You will certainly need a valuation if you want to sell the business. Other reasons you might need such an appraisal include divorce, spinoffs, business disputes and liquidation.

Too often, business owners brush aside valuations, believing them necessary only if they decide to sell. As a result, about one in 20 small businesses have done a formal valuation, according to the National Association of Certified Valuation Analysts.

Accurately valuing a small business can be complicated. You can determine the value in many ways, from software-based calculations you can do yourself to certified valuations by professionals. Prices range from $25 for the simplest software to thousands for a detailed analysis. Business brokers, hoping to sell your business, may also provide them.

Try to match the valuation method you use with the reason you are doing it. If it is for loan purposes, for example, look for someone who has completed small-business valuations for that purpose. The National Association of Certified Valuation Analysts offers a free service at www.nacva.com to help you find an expert in your area. And www.priceyourbusiness.com offers small-business valuation software.

Stephen L. Rosenstein is co-chairman of Greater Baltimore, SCORE Chapter No. 3. Call 410-962-2233 to speak to a SCORE counselor or visit www.scorebaltimore.org To send a question to SCORE representatives, e-mail smallbiz@baltsun.com