A business valuation is a valuation of the whole company or the company shares which is created by an external contractor (tax adviser, chartered accountant etc.).
The value is determined using various features including the report function – in which the specific value of the business is determined; the information function – for the purchaser, who receives information about the object of the valuation; and also, particularly in the case of buying or selling a company, the advisory function which is essential for the buyer and the seller for the impending negotiations.
The sales talks are therefore based on a monetary value which is determined in various ways (the method used depends on the purpose of the valuation) and summarized from various key figures.
The methods used and the specific data collected can be jointly agreed between the vendor and the interested buyer. The company valuation serves as the basis for a comprehensive company exposé.