Business Valuations BACK Assigning a dollar value to the business as a profitable operating entity.   The value of a business includes not only the value of the tangible assets such as equipment and inventory but also the intangible assets such as the business as a profitable operating entity encompassing systems, procedures and talent to deliver the products and services. Reason for a business valuation    There are a number of reason why one might want a valuation on his or her business.      Use a Valuation Professional    It is becoming increasingly important to utilize a professional to value the closely held business.      Valuation Process and Basis of Valuation    Business valuation is a combination of science and art. The science is based on generally recognized and established valuation techniques and the business's financial documents. Read about the art and process of valuation in this article.      Methods of Valuation    There are a number of commonly used valuation methods. Each of the methods described below, when applied to a particular situation, will yield a different result.      Use of Discounts    For any number of reasons, an equity interest in a closely held business may be worth less than its prorata business enterprise value. This difference is generally referred to as the discount amount, and there are reasons why discounts are applied, especially in a privately held company.      Jim Erlandsen, CPA, CVA