Determining the worth of a business, commonly referred to as business valuation, is a crucial aspect for entrepreneurs and investors. It involves assessing the financial health, market position, and future prospects of a company to determine its monetary value.
Business valuation holds immense importance as it aids in various decision-making processes, including mergers and acquisitions, attracting investors, securing loans, and estate planning. Understanding the factors that influence a business’s value and employing appropriate valuation methods is essential for achieving accurate results.