Management

Define and Discuss on Business Valuation

Define and Discuss on Business Valuation

Principle purpose of this article is to define and discuss on Business Valuation. The procedure of determining the particular economic value of a business or company, a business valuation can be used to determine the fair value of a business for a number of reasons, including purchase value, establishing partner ownership and separation and divorce proceedings. Business valuation is really a process and some procedures used to estimate the economic value associated with an owner’s interest in a very business. Valuation is used by financial market participants to look for the price they are able to pay or acquire to effect a sale of a business. This article briefly explain three approaches of business valuation: Asset Approach, Market Approach and Income Approach.