Business Finance Homework Help

1. Before a valuation analyst proceeds in valuing a business, the analyst must recognize the purpose of the valuation. Different purposes require the use of different valuation methods and approaches and will frequently generate different values. The purpose of the valuation will affect the assumptions and methodologies used to determine value. There are many reasons to have a closely held business valued, identify at least three reasons for the valuation of a private company. Include the appropriate standard of value next to the purpose, i.e., fair market value, fair value, strategic/investment value.

2. Why are standards (NACVA or AICPA) necessary and essential to business valuation?

Please view the accompanying video from NACVA on Professional Standards.