Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to perfect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes.
Read more about Business Valuation: Standard and Premise of Value, There Are Two Premises of Value, Income Approaches, Asset-based Approaches, Market Approaches, Option Pricing Approaches, Discounts and Premiums, Estimates of Business Value
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