When entrepreneurs need to determine the value of their own company, many mainly focus on the balance sheet and the profit and loss statement. These are all expenditures that were spent in the past. It is more important to focus on future expectations when determining the company value because the buyer buys the future and not the past.
A valuation ensures additional insight into your company and its value. Not only returns will be considered, but also the transferability of those returns to the buyer. Furthermore, risks and dependencies play an important role. With a valuation you gain insight into potential improvements within the company and you will be optimally prepared if your company needs to be sold.