Business Valuation
Business valuation is the process of determining the economic value of a business or company. It assesses a variety of factors to determine the fair market value in a sale, but there is no one way to verify the worth of a company. Business valuation can depend on the values of the assessor, tangible and intangible assets, and varying economic conditions. Business valuation provides an expected price of sale; however, the real price of sale can vary.
Although the primary purpose of business valuation is preparing a company for sale, there are many purposes. The following are a few examples:
- Shareholder Disputes.
- Fair Market Value.
- Estate and Gift.
- Mergers, Acquisitions, and Sales.
- Buy-Sell Agreements.
- Financing and Loan.
- Purchase price allocation.
- Periodical Reporting.
- Taxation.
- Bankruptcy.