Section 1 - Instruction

In this course path, we'll explore a fundamental business question: what is your company actually worth?

Every business has value, but determining that value requires specific methods and careful analysis. Understanding why we value businesses is the first step to mastering the process.

Engagement Message

Have you ever wondered what your favorite company is worth?

Section 2 - Instruction

Businesses get valued for many different reasons. Sometimes it's for buying or selling a company. Other times it's for legal disputes, tax purposes, or investment decisions.

Each situation creates different requirements for how detailed and precise the valuation needs to be.

Engagement Message

Can you think of a situation where knowing a business's value would be important?

Section 3 - Instruction

Here's the key insight: the purpose of your valuation directly influences which methods you'll use.

Selling to a competitor? You might focus on market comparisons. Dividing assets in a divorce? Asset-based approaches become more relevant.

Engagement Message

Why do you think different purposes require different approaches?

Section 4 - Instruction

Let's look at some common valuation scenarios:

Mergers & Acquisitions: Buyers need to know maximum price to pay
Estate Planning: Tax authorities require fair market value
Litigation: Courts need objective, defensible valuations

Engagement Message

Which of these scenarios sounds most complex to you?

Section 5 - Instruction

Investment decisions also drive valuations. Venture capitalists value startups before investing. Public investors value stocks before buying shares.

Even internal decisions like executive compensation or employee stock options require knowing what the business is worth.

Engagement Message

Have you ever made an investment decision? What information did you consider?

Section 6 - Instruction

The stakes matter too. A casual estimate for internal planning differs from a formal valuation for a $100 million acquisition.

Higher stakes require more rigorous methods, extensive documentation, and often third-party validation from professional appraisers.

Engagement Message

What's one high-stakes situation that would call for a formal valuation?

Section 7 - Practice

Type

Sort Into Boxes

Practice Question

Sort these business scenarios based on whether they require formal valuation or can use informal estimates.

Labels

  • First Box Label: Formal Valuation
  • Second Box Label: Informal Estimate

First Box Items

  • Court divorce
  • IPO filing
  • Tax dispute
  • Acquisition bid

Second Box Items

  • Budget planning
  • Team discussion
  • Rough estimate
  • Internal review
Next
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