Much attention has been given recently to issues bonds as debt instruments. Today we want to catch some breath and take a closer look valuation of the company, prompting you when the valuation of the company may be useful to you.

Firstly, the valuation of the company, of course, is a necessary step if you want to sell them. This need arises in the first stage - the receipt of the draft proposal by the owner of the company.

Then you yourself assess whether the quote is something that you expected. Then you ask yourself how I can objectively assess its value. Are the proposed conditions favorable for me?

When you sell a business, just like when you sell a car, you should definitely know its market value. Thus, even more important is to assess the enterprise value at transaction needs.

Secondly, the obvious thing is for sure, the valuation of the company must satisfy our own curiosity. It is often the owner, who wants to know the value of his/her company to meet the same need to have this information.

Thirdly, the value of the company is also the necessary information for external customers, which are the new investors. Because before they invest in our business, they will want to know its value for analyzing the profitability of that investment.

Valuation of the company may be required by the lender (bank or other institution / person sponsoring our activities). Often also determine the market value is necessary when selling shares or selling the entire company.

Business valuation is also standard practice when making changes to the legal structures of companies. Valuation is carried out during the preparation of the consolidated financial statements - to determine the fair value of assets acquired.

Finally - the valuation of the company we have to do, doing simple calculations comparative results of our own company in relation to the results and the values of the listed companies, which can be made virtually by anyone.

Can you estimate the value of the business? Of course, you can - soon we'll show you how.

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