Normally, the development of aims in company valuation takes place in the context of some kind of economic transaction.
A company has different value for different buyers and for the seller.
For instance, a large, technologically advanced foreign company that wishes to buy another well-known national company in order to enter our market, taking advantage of the reputation of the local brand, will only value the brand, but will not value the facilities, machinery and so on, since it has more advanced assets.
On the other hand, the seller will value his material resources very positively since they are able to continue producing. From the former's point of view, it is a matter of determining the maximum value, and from the seller's point of view, it is a question of knowing what the minimum value at which he should sell will be.
These two figures are the ones that are confronted in a negotiation in which a price that is finally agreed is usually somewhere in between the two.A company may also be worth different values to different buyers for various reasons: different perceptions of the future of the industry and the company, different strategies, economies of scale, complementarity economies, etc.
An assessment serves many different purposes:
Valuation is the way to justify the price at which shares are offered to the public.
Valuation is used to compare the value of shares with the value of other assets.
The valuation of a company or business unit is fundamental to quantifying the creation of value attributable to the managers who are being evaluated.
The valuation of a company and its business units is a preliminary step to the decision of staying in business, selling, merging, milking, growing or buying other companies.
There is also the intermediate position which considers the views of buyer and seller and is represented by the figure of the neutral arbitrator. Arbitration is being more commonly used in disputes. For instance, in the sale and purchase of companies, in the settlement of contracts, in cases of division of estates due to inheritance, etc.