What is Business Valuation?
Business Valuation is the process of determining the economic worth of a business or company.
It answers the important question:
“How much is my business really worth?”
Valuation is essential for making informed decisions during:
⇒ Buying or selling a business
⇒ Mergers and acquisitions
⇒ Fundraising from investors
⇒ Startup valuation
⇒ Shareholder agreements or disputes
⇒ Financial reporting or legal matters
How Does Business Valuation Work?
Valuation experts use financial data, market trends, and various valuation methods to calculate the fair value of a business.
Common Methods Used:
Asset-Based Valuation – Based on total assets minus liabilities.
Income-Based Valuation – Based on future earnings or cash flow (like DCF – Discounted Cash Flow).
Market-Based Valuation – Based on comparing similar businesses in the market.
What Does a Valuation Report Include?
- Company background & overview
- Financial performance (past & projected)
- Industry and market analysis
- Assets & liabilities
- Valuation method(s) used
- Final value estimate with explanation
Benefits of Business Valuation Services
⇒ Helps in Making Smart Business Decisions
Know when to buy, sell, expand, or invest.
⇒ Gives You a Clear Picture of Your Business’s Worth
Useful for founders, partners, and shareholders.
⇒ Supports Fundraising & Investor Confidence
Shows that your business is investment-worthy with professional backing.
⇒ Assists in Mergers, Acquisitions & Exit Planning
Helps negotiate a fair deal.
⇒ Useful in Legal & Tax Situations
Required for divorce settlements, inheritance, or tax reporting.
⇒ Strengthens Strategic Planning
Use the insights to improve business performance and value.
Who Needs Business Valuation?
- Startups & SMEs
- Investors & Venture Capitalists
- Business buyers & sellers
- Companies preparing for IPO or funding
- Legal & accounting professionals