Business Valuation Standards

Business Valuation Standards are guidelines and best practices established to ensure the consistency, accuracy, and credibility of business valuations. These standards are set by professional organizations such as the American Society of Appraisers (ASA), the International Valuation Standards Council (IVSC), and the Appraisal Foundation. They outline the methodologies, procedures, and ethical considerations that appraisers must follow when determining the value of a business or its assets.

Example

An appraiser valuing a privately held company for a potential sale would follow business valuation standards to ensure that the valuation is conducted using accepted methods and principles, providing a fair and accurate assessment.