Business valuation is an examination conducted towards rendering an estimate or opinion as to the fair market value of a business interest at a given point in time, Generally when valuing a business a notional transaction is assumed, that is, one which has not been subjected to the bargaining process.

Valuation is an art rather than an exact science, and a properly conducted valuation is nothing more than an expression of informed opinion, which is based on fact and judgement. valuation are not precise. consiquently,  valuation estimates and opinions are generally stated as a range of values.

MISCONCEPTIONS ABOUT VALUATION

Myth 1:  A valuation is an objective search for true value.

All valuation are biased. however the questions are how much and in which direction. The direction in magnitude of the bias in your valuation is directly proportional to who pays you and how much you are paid.

Myth 2: Since valuation models are quantitative, valuation is better.

Myth 3:  A well researched and well done valuation is timeless.

Myth 4: A good valuation provides a precise