Every business valuation work should be underscored by a reason or purpose. Even though there are several reasons for a business valuation, most of these cluster around four broad categories. These are transaction (M&A, purchase price allocation, capital injection, equity sale, etc.), tax (estate and gift tax), litigation (marital dissolution), and regulatory (fairness opinion). The Reasons for Business Valuation are important because they inform the assumptions and appropriate methods used to determine the value of the business.