The standard of value answers the following general, but very basic, question: "Value to whom?" Depending on the purpose of an appraisal, one standard of value may be more appropriate than another. In the context of business valuations, the most commonly used standards of value are:

• Fair market value - price a hypothetical willing buyer would pay to a hypothetical willing seller with neither party under compulsion to transact.
• Fair value - price that fairly compensates an owner who was involuntarily deprived of the benefit of his ownership interest where there is neither a willing buyer nor a willing seller.
• Investment value - price that an identified buyer would be expected to pay with consideration given to unique benefits/synergies the buyer is purchasing.