What are the preliminary steps that are to be followed for a proper valuation?

A business or corporate valuation involves analytical and logical application/analysis of historical/future tangible and intangible attributes of business. The preliminary study to valuation involves the following aspects: Analysis of business history Profit trends Goodwill and Brand name in the market Identifying economic factors directly affecting business Study of exchange risk involved Study of employee morale Study of market capitalization aspects Identification of hidden liabilities through analysis of material contracts. In valuation exercise, some strategies are also kept in mind such as: Determining the consideration for Acquisition Determining the swap ratio for Merger or Demerger Sale or purchase of intangible assets including brands, patents, etc. Determining the Fair value of shares for issuing ESOP Disinvestment of PSU stocks by the Government Liquidation or insolvency process of the company