Business valuation is the process of determining the value of an entity or business activities. This process is usually carried out to obtain a clear picture of a business’s market value, which is important for making strategic decisions, attracting investors, or selling.
As a rule, the measurement of the value of assets, business, corporate rights and shares are carried out with the aim of:
purchase and sale (in particular, to confirm the sum of transactions for banks and regulators);
structuring / reorganization: transfer to the authorized capital of another company, as well as when one of the founders leaves the business;
raising financing: (for example, measurement of the value of collateral for a loan);
measurement of the fair value of the company’s financial investments for relevant presentation in the entity’s balance sheet under IFRS.