Valuation is the process of determining the current worth of an asset or a company. There are many techniques used to determine value. The market value of a security is determined by what a buyer is willing to pay a seller, assuming both parties enter the transaction willingly. SPVs are used to invest into private assets and private assets do not have a public market to place a value on the asset. This means a private asset’s true value is never really known until a financing event occurs.
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