The purpose of a company valuation is to determine the value of companies or shares in companies. It is an essential discipline in corporate finance.
Valuations may be necessary in connection with specific M&A projects (business acquisitions and sales), financial reporting, credit checks, tax planning and compliance, trust and estate tax returns, shareholder and succession planning, and litigation cases (expert reports).
The subject of the valuation does not necessarily have to be the company as a whole. Subdivisions – such as subsidiaries or branches – as well as specific assets, even business plans for investment projects (project valuations) or start-up business plans allow for a valuation.