Entrepreneurship and Small Business Development Essay - 1

Entrepreneurship and Small Business Development - Essay Example in that location is a wide florilegium of business forms depending on their size, management, as rise up as proprietorship and ranging from public federations, private companies to the smallest businesses that atomic number 18 singly owned. The operations of each form of a corporation may take several courses where some come together to operate as a group, while early(a)s remain singly operated (Smallbone, 2008). For successful enterprises operations, valuers and policy makers or even the proprietors always find it necessary to value companies according to the prevailing operations. Valuation is crucial for it assists the concerned parties in making appropriate decisions as well as laying the corporations on a scale, a factor that helps predict the future direction of the companies. More so, different techniques and approaches are employed in the companies valuations, which are carried out depending on the form of t he company at hand. Private company valuations are thus deemed very important in the day-to-day running of the corporations. There is a need for employment of different techniques in the valuation processes to enhance a comprehensive cover, since each technique yields distinct Results. This paper is aimed at investigating into the valuation of private companies and several valuation techniques in details. Additionally, it will be crucial to establish the advantages and disadvantages of the several methods herein discussed as well as the other alternative methods that could as well be used in the valuation processes in regard to private companies (Bridge, et al., 2003). Company valuation is a process that entails the physical exercise of a sequence of procedures in estimating its value.