Valuation

Business valuation is the general process of determining the economic value of a whole business or company unit. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, taxation, and even divorce proceedings.

A business valuation might include an analysis of the company’s management, its capital structure, its future earnings prospects or the market value of its assets. Common approaches to business valuation include a review of financial statements, discounting cash flow models and similar company comparisons.

1. Better Knowledge of Company Assets.
2. It is significantly important to obtain an accurate business valuation assessment.
3. A closer look at the entity’s anticipated earnings and future cash flows can help business owners determine areas of focus for growth.
4. Understanding of Company Resale Value.
5. Obtain a True Company Value.
6. Better During Mergers/Acquisitions.
7. Access to More Investors.
8. The purpose of a valuation is to track the effectiveness of your strategic decision-making process and provide the ability to track performance in terms of estimated change in value, not just in revenue.