Valuations are driven for Regulatory and Non-Regulatory reasons. The latter is more common and has a broader use and need, making Valuations important during Ligitation and Transactional activities.
The following graph describes the most common needs for a Certified Business Valuation report.
- Those knowledgeable about valuation recognize that the field is as art as science.
- Business valuation is often described as part art and part science because many of the techniques business appraisers use require subjective assumptions.
- The practice of valuation is an inexact art, not a precise science.
In all circumstances, the Purpose of a Business Valuation is to Protect the Integrity of the transaction or event.
