Business Valuation (Shannon P. Pratt)

Business valuation, as explained by Shannon P. Pratt, is the process of determining the economic worth of a company. It involves analyzing financial statements, market conditions, assets, and income potential to estimate what a business is truly worth. This is important for decisions like selling, buying, or merging companies, or for legal and tax purposes. Pratt's approach emphasizes a systematic, well-supported method that considers multiple valuation methods and adjusts for specific business factors, aiming to provide an accurate, unbiased estimate of a company's value in the marketplace.