what is the purpose of valuation 
the purpose of valuation is to determine the worth of an asset or company and compare that to the current market price this is done for a variety of reasons such as bringing on investors selling the company purchasing the company selling off assets or portions of the business the exit of a partner or inheritance purposes the bottom linevaluation is the process of determining the worth of an asset or company it s important because it provides prospective buyers with an idea of how much they should pay for an asset or company and how much prospective sellers should sell for valuation plays an important role in the m a industry as well as the growth of a company there are many valuation methods all of which come with their pros and cons 