In its simplest form, the value of a business interest or other asset is the present value of all future benefits (or cash flows) of the business or asset. Analysts use a variety of financial and valuation tools to estimate the magnitude and risk of these future benefits, in theory simulating the decision-making processes of hypothetical willing buyers and sellers of the business interest or asset in question.
In general, individuals or companies can need independent valuation opinions whenever there are two or more parties with conflicting interests in value. Such situations often include:
