Business Valuation Needed Sell Careful Conduct Partners Determine

Business valuation "comes into play" (becomes relevant; is needed or necessary) whenever someone needs to know the "market value" (how much someone will pay for something) of a business. Obviously, business valuation is important when someone wants to sell a business. A careful "financial appraisal" (the process of determining how much something is worth) can help the seller "set" (establish; create) an "reasonable" (not too high or low) price and attract the right buyers. And buyers must also conduct a careful valuation to "assure" (make sure something is true) themselves that they are not paying too much for a new "acquisition" (something that one is buying, especially a business).

But there are other situations in which valuation is needed. For example, when a business is a "partnership" (a business with several owners) and one or more partners want to sell their "stake" (partial ownership) in the company, a valuation is needed to determine how much that partner or those partners should be paid.

When there are "disputes" (disagreements) about "estate taxes" (taxes that are collected when someone dies), an "objective" (not directly involved, so able to provide a fair assessment) "party" (person or business) must conduct a valuation.

For example, in the case of "divorce" (the official, legal end of a marriage when the two people are no longer married to each other) where one of the spouses (husband or wife) is a business owner, a valuation might be needed to determine and "equitable" (fair) "distribution" (giving something to more than one person) of "assets" (things that have value and can be sold for money) between the two spouses.