When a business valuation is performed, professional business valuators or certified public accountants will examine a company’s financial documents to determine the value of the business. The type of business valuation depends on the reason for it. Sometimes a valuation is performed to determine the fair market value of a business for purposes of its sale and purchase. At other times it might be performed to learn the investment value of a business should a large investor be involved. Each type of business valuations casa grande AZ involves different valuation methods.
Other purposes of business valuations include disputes or future planning. Examples of disputes would include owner conflict, buyouts, or divorce. Future planning involves determining the company’s strengths, weaknesses, opportunities, and external strengths, to prepare and invest in future growth of the company.