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.