Valuation and modeling are related financial concepts used in various aspects of finance, investment and business which provide important insights into the financial performance and potential of an asset, company, or investment, helping investors and business owners make informed decisions.

In the M&A process, the buy-side and sell-side aim to find an affordable price range for potential acquisitions by determining size range preferences, profitability requirements, and shareholding preferences. The financial advisory seeks to ensure clients have a clear understanding of the value determination and implications etc. The valuation process involves data collection, normalization, review, and discussion. Financial statements are collected, analyzed, and adjusted to create a financial model that determines the range of value and suggests ways to increase business value. Financial advisors provide objective advice, prepare financial plans, evaluate risks, and ensure clients understand the implications of valuation. The buyer benefits by potentially lowering the price, while the seller benefits by maximizing their business’s potential price.