The first step is to decide what is to be valued. On the other hand, if an entrepreneur is transferring wealth or planning for the future, the interest being valued may only represent a minority interest in the company.
Value is a function of the future earnings of a company.
A seller should be aware however, that a buyer will not pay for revenues and earnings that cannot be documented. The quality and transferability of the earnings stream will be important in the valuation process. Transferability is the likelihood a buyer will retain an existing base of customers. If a company's earnings are marginal or non-existent, its value may be in its assets. Both discounts are routinely allowed in estate related valuations.