Businesses are often looking for new capital infusion or to acquire other potential ventures for horizontal or vertical integration. And since it involves exchange of consideration partly in monetary terms or sometimes settlement of differential in money only, a critical analysis of the business in the condition that it exists and with its myriad possibilities after the intended scenario need to be studied independently.

This report assumes an arms-length transaction between two willing and able parties, but in the light of circumstances that are influenced by both the parties in question and additional angles that affect the synergy planned.

The analyst considers several non-financial parameters, past financial results and projections, compiles all the information in an array most suited for the analysis, applies available valuation models and then determines the value of that business under the assumed possibilities with the expected probabilities and under the environment as existing at the time of such learned judgment.

Business valuation is subject to severe fluctuation due to the direct impact of management decisions and market forces, yet, are a principal tool for decision making for mergers, demergers, joint ventures, business takeovers and disposal.