Business valuation

Possible aims of performing valuation include:
  • sale of an enterprise or a part of it,
  • organizational changes (e.g. merger or demerger),
  • tax or insurance procedures.

The most commonly applied valuation methods are:
  • market approach (comparison to other similar companies by using multiples),
  • asset-based approach (assuming that assets are the best value indicator — static view),
  • income approach (future benefits state the value of the company — dynamic view).