UAE

Business Valuation

Business valuation is a set of procedures used to estimate the economic value of an owner’s interest in a business.

This is often used by business appraisers to allocate business purchase price among business assets, establish a formula for estimating the value of partners’ ownership interest for buy-sell agreements, and many other business and legal purposes.

Businesses or their assets are valued for a variety of reasons. Some of the more common purposes for valuation are:

a) Mergers and acquisitions
b) Litigation and ownership disputes
c) Shareholder oppression cases
d) Financial reporting
e) Goodwill valuation & impairment
f) Buy/sell agreements
g) Family limited partnerships
h) Reorganizations and bankruptcies
i) Inheritance
j) Compensation