The purpose-oriented valuation process within the framework of functional business valuation

Scientific research and commercial practice have, in the course of time, generated a huge amount of different methods for the determination of business values. All of the variations of those methods have been developed on the basis of the particular purposes in their original fields of science. Though certain concepts, methods and value drivers have meanwhile reached a high level of dominance, they often fail in reaching their occasion-triggered purpose, or, in extreme cases a common applicability is claimed. The following article is introducing the concept and the application of purpose-oriented valuation process within the framework of the functional valuation. Based on a sequential and purpose-dependent circular process logic, an open framework is proposed, which assigns distinct valuation purposes to single valuation occasions, whereas the valuation purposes serve in the following process steps as basis for the logical deduction of suitable valuation goals, valuation concepts, equilibrium and stability assumptions about the valuation object and its environment, as well as. appropriate valuation methods and their value drivers.