Business Valuation

Definition:

An appraisal of a business with prepared and agreed upon terms of evaluation. A business valuation looks at all aspects of a company, from their equipment and building to their employees and intangible assets, and comes up with a total “value” for the company as a whole.

Examples:

When you are trying to sell your company, conducting your own internal business valuation first will be helpful in preparing for a more formal public one.

A business valuation will help you to understand what your business is worth, by comparing your assets and liabilities to other companies in the same field.