When selling or buying a business or a company, it is crucial for both parties to have a clear and honest idea of the economic value of the business. There are various processes in business valuation that are part of determining the price. In many cases, both parties tend to hire a joint expert to assist partly or conduct in entirety, the process of business valuation. This is primarily imperative because what a business is worth or should be worth means different things to different people, this process is largely influenced by the specific need of each client, while also being influenced by the present economic scenario and needs, national and international policies, etc.
Business valuation procedures are usually of three kinds: Income-Based Business Valuation methods, Asset-based Business Valuation methods, and Market-Based Business Valuation methods. More often than not, multiple methods are simultaneously used to arrive at a wholesome, well-rounded estimation of the value or worth of assets.