A business valuation is a process of determining the economic value of a business, giving owners an objective estimate of the value of their company. Typically, a business valuation happens when an owner is looking to sell all or a part of their business, or merge with another company. Other reasons include if you need debt or equity to expand your business, if you need a more thorough tax analysis, or if you plan to add shareholders and as a requirement by the government for financial reporting purposes.

In this video, we will understand the concepts and basic tools of valuation.

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