IntroductionBusiness ownership valuation is useful in determining the economic value of a company or business unit. Valuation is necessary to determine the fair value of a company. According to Trugman, appraisal is essential for various reasons such as divorce proceedings, taxation, determining partners' property and sale value. In this paper, business valuation helps determine whether the acquisitions made by Gucci were worth it or not. Gucci's financial statements for the period 2001 to 2003 clearly indicate an increase in operating expenses over the period because operating profit continued to decline. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay In 1999, Gucci acquired YSL. The acquisition was worth $1 billion because YSL was among the top fashion names in the industry. The YSL acquisition could have given Gucci a better competitive advantage than before because the company produced expensive Italian shoes, which are among the luxury products marketed by Gucci. Furthermore, Gucci's creative team could have helped ensure the success of the new acquisition. Therefore, the acquisition of YSL was worth it; it was only necessary for Gucci to use its own resources to allow the fruits of the acquisition to ripen. The company's ownership changed in 1983 after the death of Gucci, its founder. Maurizio Gucci started owning Gucci because, when his father died, he left him 50% of his share. Despite gaining 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. During 1999, competitive analysis showed that Gucci occupied a mid-range in the industry with its leather model ranging between $600 and $1,100. Furthermore, the financial results from 15 to 20 are between 0.5 and 1 billion dollars; and ten had revenues between $100 million and $0.5 billion. Gucci was a private company. From this he derived several benefits. One of the advantages is undisputed ownership. Gucci and his sons retained control of the Gucci Company because it was privately owned. The company was not required to report to corporate officials or management; that's why it was successful. Additionally, when a company is privately owned, it is possible to sell shares to facilitate financing transactions without losing 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 business is privately owned, it is not required to file financial or disclosure documents with various agencies. For example, Gucci's disclosures were limited to requesting information from the states in which it operates. Submitting these reports is disadvantaged because it requires storage costs. However, if a company is privately owned, the only information disclosed in the annual report is the company's address and name, as well as the current registered agent and officers. Gucci, being privately owned, has kept its financial and operational information private. Being privately owned, Gucci did not offer shares to its employees. However, this could have been beneficial for the company. First, it ensures that employees become the most important part of the company, which keeps employees motivated. When employees have stock options, it becomes easy to motivate them because they will get more rewards depending on the company's performance. This helps keep them motivated. Additionally, offering stock options reduces turnover.