Business Valuation is the process of determining the value and financial worth of an enterprise or a business as a whole, carried out to assess its condition, potential, financial stability, and growth prospects. Business valuation can be performed using different methods and approaches depending on the purpose and context of the valuation.

The main reasons for conducting a business valuation include:

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  Purchase and sale transactions: determining the market value of the enterprise during the buying or selling of a business

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  Attracting investments: evaluating the financial performance and potential of the business for investors and lenders

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  Valuation for insurance or taxation purposes

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  Compliance with accounting and tax legislation requirements

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  Valuation for strategic planning and business development

Various methods can be applied for business valuation, such as the income approach, comparable company analysis, precedent transactions method, asset-based approach, and others.

Business valuation helps to determine its market value, attractiveness to investors, risks, and potential profitability, which is crucial for making decisions regarding further development or sale of the business.