How much is something worth? Whilst there are several answers to this question, it ultimately boils down to what someone is prepared to pay for it. Everything else is speculation. The valuation of a business is the financial process of calculating its economic worth. The route of acquiring a business involves two important considerations. First, arriving at a price based on a valuation methodology; and second, undertaking comprehensive due diligence to primarily verify its true assets, liabilities, potential for growth and, most importantly, hidden risks. The due diligence exercise has several props. 
This podcast explains.