This will go towards determining the price that outside investors pay for shares. 3 Estate Planning Without a valuation process in place a many families owned business are unaware of future estate planning obligations. Assume Widgets Inc. has a cost of capital of 14% and projected returns of 1,000, 1,100 and 1,200 in years 1, 2 and 3 respectively. Scenarios in which a Business will NEED a Valuation There are a number of events that require a companys ownership to determine its value. Shurgard Storage enters based in the USA was one of the Self Storage pioneers both in North America and in Europe and is now wholly owned by Public Self Storage; however this was not always the his comment is here case. Most practical business decisions are not cut and dry. This allowed Shurgard to purchase several more small chains and lesson the costs of development.
Other factors such as the company's potential for continued growth also affect the stock value, raising it or lowering it, depending on the particular situation. Not a bad line up of financial backers. Most practical business decisions are not cut and dry. They watch the stock rise and fall and always try to do whatever it takes to remain in profit. North American Industry Classification System codes. The entire process of placing an accurate value on a company may seem daunting.