Business Valuation is the process of determining how much a business is worth.
It's not as simple a question as it first appears. The basic problem of business valuation is how to set a value on all the assets of a business, including the intangibles. How much, for example, is goodwill, a business logo, a trademark, or a client list worth?
There are several different business valuation methods that can be used to tackle the problem and attempt to determine a fair price for the business to be sold.
No one method is the solution for any business; if you use (or your professional valuator) uses a variety of business valuation methods, you’ll have a more accurate idea of just what your business is worth and a range of prices that you can use as parameters for your negotiations.
If you are selling your business, in my opinion, you should not try to do your own business valuation. Because so many factors need to be taken into account, business valuation is best left to professionals such as Chartered Business Valuators.