Business Valuation

The process of determining the economic value of a business or company. It involves assessing the company’s assets, liabilities, cash flow, earnings potential, and market conditions to estimate its fair market value. Business valuation is often conducted for various purposes, including during the sale of a business, merger or acquisition, estate planning, or in legal disputes. Key methods used include asset-based valuation, income-based valuation and market-based valuation. Factors that affect business valuation include financial performance, market conditions, growth potential, and the company’s risk profile.