The purpose of conducting business valuation is to estimate the economic value of the business and the willingness of the owner to attract the investors to invest or participate in the financial growth of the business. A large number of investors, financial gurus, stakeholders and shareholders take business valuation into consideration to maximize the financial capability of the business. There are tools and methods involved in estimating the business valuation, which mainly includes determining the cash flow statements, financial statement reviews and balance sheets. Many CA firms in Dubai consider business valuation as an effective financial method to seek investors, stakeholders and shareholders to invest in their business.
- To seek partnership possibilities: Many investors or firms make an attempt to consider business valuation so that they can seek for partnership. The partnership builds an opportunity for the owner to expand the operations of the business. It also improves the financial decisions.
- To find pre-investment value: In order to make the startup adaptable into the market, the owner of a business startup might require establishing a baseline to estimate the value so that investors can exchange seed money. Initially, startups don’t have a lot of funds, so they seek business valuation as a tool to estimate the pre-investment value.
- To provide updates in the market: For instance, if the owner has an established business, the business valuation tool