PURPOSES OF VALUATION


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There are many reasons for enterprise valuation. The most common ones are those which are connected with a change in the ownership structure of the enterprise although knowing the value of the enterprise might prove useful in many other situations as well.

EXAMPLE PURPOSES OF VALUATION:

  • sale or purchase of an enterprise
  • division or demerger of an enterprise
  • settlements between partners in a partnership (or shareholders in a company) running an enterprise
  • contribution of an enterprise or its part to a company on the in-kind basis
  • merger of enterprises

 

  • liquidation of an enterprise
  • determination of tax on succession, donation of enterprise or share in the share capital of a company
  • check of the value of the capital employed in an enterprise by the investor