Valuation Intricacies

Abstract

The valuation of business encompasses a set of procedures used to estimate the economic value of an owner’s interest in the business. The success of personal decision making and planning hinges on creating a realistic understanding of the value of the business and the value of the shares in business. Several methods of valuation are available, but the choice of the suitable method has more to do with the valuer’s experience and expertise. This article makes an assessment of the finer aspects of the techniques of valuation and provides the intricate details and issues that one would encounter in the valuation of a company. This article also seeks to provide an in-depth knowledge of the various methods that exist for the purpose of valuation.