IntroductionBusiness ownership valuation is useful in determining the economic value of a company or business unit. To determine the fair value of a business, a valuation is necessary. According to Trugman, appraisal is essential for a variety of reasons such as divorce proceedings, taxation, establishing partner ownership and sale value. In this article, business valuation helps determine whether the acquisitions made by Gucci were worthwhile or not. Gucci's financial statements for the period 2001 to 2003 clearly indicate an increase in operational expenses over the period as operating income has continued to decline. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayIn 1999, Gucci acquired YSL. The acquisition was worth $1 billion as YSL was among the top fashion names in the industry. The acquisition of YSL could have given Gucci a better competitive advantage than before because the company manufactured expensive Italian shoes, which are among the luxury products marketed by Gucci. Additionally, Gucci's creative team could have contributed to the success of the new acquisition. Therefore, the acquisition of YSL was worth it; Gucci just needed to use its resources to ripen the fruits of the acquisition. The company's ownership changed in 1983 after the death of Gucci, its founder. Maurizio Gucci began owning Gucci because, when his father died, he left him 50% of his stake. Although he had the support of his cousin Paolo, Maurizio still controlled more than 50% of the company, making him the legal owner of Gucci at the time. In 1999, competitive analysis showed that Gucci occupied a mid-range in the industry with its leather model ranging between $600 and $1,100. Additionally, 15-20 financial results are between $0.5 billion and $1 billion; and ten had revenues between $100 million and $0.5 billion. Gucci was a private company. From there he enjoyed various benefits. One of the advantages is uncontested ownership. Gucci and his sons retained control of the Gucci Company because it was privately owned. The company was not required to report to company directors or management; that’s why he was successful. Additionally, when a company is private, one can sell shares to help finance operations in the event of loss of control of the company, provided that more than 50% of the company's shares remain with the owner. Another advantage is limited disclosure. When a company is private, it is not required to file financial or disclosure documents with various agencies. For example, Gucci's disclosures were limited to information requested by the states in which it operates. Filing these reports is disadvantaged because it requires a filing fee. However, if a corporation is private, the only information disclosed in the annual report is the address and name of the business, as well as the registered agent and current officers. Gucci, being a private company, has had its financial and operational information kept private. Being a private company, Gucci did not offer shares to its employees. However, it could have been beneficial for the company. First, it ensures that employees become a more valuable part of the company, which keeps them motivated. When employees have stock options, it becomes easy to motivate them as they will get more rewards based on the.