Glossary
Asset-Based Approach
Last updated 11 September 2007
Description
Utilized more in distress situations where whether a business will generate any future earnings is in doubt.
The value of asset based analysis a business is equal to the sum of its part. That is the theory underlying the asset based approaches to business valuation. In contrast to the income based approaches, which require the valuation professional to make subjective judgments about capitalization or discount rates, the adjusted net book value method is relatively objective.
Examples
None.
See Also
None.
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