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A business valuation (or appraisal) is a process of determining what a business is worth.

Reasons to formally determine the value of the family business

  • selling the business
  • buying or merging with another business
  • divorce litigation
  • buy-sell agreement
  • gifting of stock
  • estate taxes/life insurance planning
  • employee stock ownership plans (Valuation of your family business, 2007).

Approaches to business valuation

  • Income approach
  • Market approach
  • Asset approach (Valuation of your family business, 2007).

Levels of business valuation

  • Complete appraisal
  • Calculation (Valuation of your family business, 2007).


References



Further reading and external links



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Categories: Financing