It is usual for some form of valuation exercise to be carried out when a company is issuing new shares or when the company itself is being sold. The valuation will seek to determine the current worth of the shares.

In smaller companies with few assets and insubstantial trade, the value placed on each share may be its nominal value.

In the case of public quoted companies, the valuation exercise has a defined starting point. A market place already exists in which the company's shares are traded regularly on a recognized exchange, for example, the London Stock Exchange. The share price of the company would provide a reasonable starting point for valuing additional shares to be issued by the company or for the business itself.

In business entities where there are plentiful assets (some of which may be intangible), more complex and substantive work will be required. Accountants may be brought in to provide an up to date valuation and produce a report outlining their assumptions, methodology and conclusions.