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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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Medical Equipment Appraisal

Peak Business Valuation

A medical equipment appraisal is important because it gives an accurate and unbiased evaluation of the value of the equipment. There are different types of appraisals, such as market value, liquidation value, and replacement cost. Market value is based on the current value of the equipment in the market.

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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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Why is a Machinery and Equipment Appraisal Important?

Peak Business Valuation

Below, we detail a few common machinery equipment appraisals: – Market Value Appraisal The market value appraisal determines the fair market value of a business’s machinery and equipment. The liquidation value appraisal takes factors such as time constraints and market conditions into account.

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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.