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Transcending Value – Liquidation, Monetary, Financial, and Strategic Value

Value Scope

This is the second in a series of blogs that attempts to explain and distinguish between various valuation concepts, such as price, fair market value, fair value, liquidation value, intrinsic value, financial value versus strategic value, monetary versus economic value, emotional and psychic value, among others.

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Top Methods CPAs Use to Determine a Business’ Value

Shuster & Co.

In this instance, the formula accounts for the business’ total equity by calculating asset value minus total liabilities. The liquidation value method assumes that the business will cease operations and liquidate any assets. The value is based on the net cash that would be generated from the sale of assets.

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Transcending Value – Intrinsic and Fair Value

Value Scope

This is the first in a series of blogs that attempts to explain and distinguish between various valuation concepts, such as price, fair market value, fair value, liquidation value, intrinsic value, financial value versus strategic value, monetary versus economic value, emotional and psychic value, among others.

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Approaches and Methodologies Considered When Appraising Your Business

BV Specialists

The options available to the appraiser under this approach are as follows: Adjusted Net Asset Value: Under this methodology, the appraiser will adjust the company's tangible assets based on an estimate of Fair Market Value, while taking into account existing liabilities.

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BUSINESS VALUE vs. UNDERLYING ASSETS

The Mentor Group

This latter analysis should reflect a Chapter 7 shutdown of the business; it sets a parameter for determining how various debtors might be paid if the business no longer exists.

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Supporting IVS compliance in Spain

IVSC

The latest edition of IVS now incorporates the following definitions: Basis (bases) of Value. Equitable Value. Fair Market Value. Fair Value (IFRS). Investment Value. Liquidation Value. Market Value. Synergistic Value. Value (noun). Cost(s) (noun). Discount Rate(s). Price (noun).

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Recent Decisions Enforce LLC Member’s Right of First Refusal, Restrict Partnership Accounting, Invalidate Shareholder’s Post-Mortem Buyout

Farrel Fritz

On the potential negative side, the buyout provision’s structure, pricing mechanism, and terms: as with any right of first refusal, potentially discourage bona fide outside bidders, allow the non-approving member to purchase the approving members’ membership interests at an indefinite liquidation value rather than a direct purchase of the LLC’s realty (..)