These are the basic steps involved in the typical valuation of a business:

1. Define Value. The first step is to define what value you are seeking. This definition depends, in part, on the valuation's purpose. If you don't clearly define what value you are seeking, you may end up with a value that does not fit the purpose.
2. Gather Data. The valuator gathers historical and projected financial, operational and economic information about the business, including the company's financial statements, tax returns, history of ownership changes and resumes of current management. The valuator also examines the company's equipment and facility.
3. Determine the Value. The valuator determines which valuation method or methods will provide the most accurate value for the company as a whole, based on the specifics of the situation. He then analyzes all of the information gathered about the business itself. At this point, the valuator may look at the value established for similar businesses as well as the economic climate for the industry and the region the company operates in.
4. Adjust the value. The valuator considers attributes that affect the value of the specific shares in question. These include their marketability, their attached voting rights, whether they represent a controlling interest in the company and any special circumstances relating to that company. Then to reflect these factors, he applies any discounts or premiums necessary.