Business valuation

Business valuation is like when a grown-up wants to know how much something is worth. Just like people buy and sell things like toys and other things they own, businesses buy and sell companies, too. When they do, they need to know how much the company is worth so they can figure out how much money they'll need to give or get. Business valuation is the process of seeing how much the company and everything it owns is worth. To do that, grown-ups use different numbers and math to figure out an answer.