+1 862 207 3288 There are basically, two approaches which can be considered for the valuation of the business. These approaches state the very basic purpose of valuation. So, the approaches can be divided into two very extreme situations:
Going Concern: In this scenario the business is a continuing business and this aspect is same for all the companies who are continuing the business. In this case the purpose of the valuation remains to value the assets of the concern, its liabilities as a whole, the existing stock of the concern. It is valued for the continuation of the business and any alteration in the concerned segment can also be recognised from it. It is basically called a prospective approach to valuation.
Liquidation or Termination: In this case the proceedings are basically stopped by the concern and the concern is now ready for sales and for that purpose the valuation is being made. For the liquidation purpose the valuation is done and the net assets is being found out then either it is being acquired by the other person at a price higher than the cost or it can be acquired at a lower value, based on the valuation.
