Business valuation

A valuation must identify what is being valued: the entire operating enterprise, ordinary equity, a controlling stake or a minority holding. Asset, earnings, market and cash-flow methods answer the question using different evidence and assumptions. Consider maintainable performance, growth, risk, debt, non-operating assets, control and marketability. Value is not necessarily the same as negotiated price, which can reflect buyer-specific synergies and bargaining. Use consistent units and avoid double-counting assets or benefits already included in a cash-flow forecast. A range and sensitivities may be more informative than unsupported precision.