The process by which the economic value of a business, or the value of a specific owner/partner’s interest, is determined. A business valuation may be required by a potential purchaser or shareholder, by an owner/partner who is intending to sell, in situations where the company intends to raise capital, or in the case of divorce proceedings, etc. There is no standard method of valuation, and approaches can include a review of cash flow statements, discounting cash flow models, or comparison with a reasonably similar business whose value is already known.

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