What is the difference between a financial appraisal and a business appraisal?

What is the difference between a financial appraisal and a business appraisal Introduction: The Crucial Role of Appraisals in the Business World Hello everyone, and welcome to today's video. In the dynamic world of business, appraisals play a pivotal role. They provide insights into a company's financial health, growth prospects, and overall value. Today, we'll be exploring two key types of appraisals: financial appraisal and business appraisal. Let's dive in! Defining Financial Appraisal: Focusing on the Numbers When we talk about financial appraisal, we're primarily concerned with the numbers. It involves a comprehensive analysis of a company's financial statements, such as its balance sheet, income statement, and cash flow statement. The goal is to assess the company's financial performance, liquidity, profitability, and solvency. Financial appraisal often employs tools like ratio analysis, trend analysis, and financial modeling to gain a deeper understanding of the company's financial standing. The Essence of Business Appraisal: Beyond the Numbers While financial appraisal focuses on the quantitative aspects, business appraisal takes a broader view. It encompasses both the financial and non-financial factors that contribute to a company's value.