Appraisal/Valuation
Understanding an Appraisal
Premises of Value
Standards of Value
Levels of Value
Approaches to Value
Value Enhancement
Ty Taylor

Premises of Business Value

All businesses have at least two values – a liquidation value and a going-concern value. Liquidation value assumes that the business ceases operations, its assets are sold, and its debts are paid. Under the liquidation premise, value is the difference between the cash received and the cash paid.

Going-concern value is defined by the International Glossary of Business Valuation Terms as: "The value of a business enterprise that is expected to continue to operate into the future. The intangible elements of going concern value result from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place."

Market value is usually the greater of liquidation value or going-concern value.

Asset Analytics, Inc.
904-923-5708

Ty Taylor
Chartered Financial Analyst
Certified Business Appraiser
Accredited Senior Appraiser in Business Valuation
tytaylor@assetanalyticsinc.com

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