68. The Asset-Based Approach to Business Valuation

General Valuation
Field of Study: 
CPE Credit: 
Knowledge Level: 
Basic knowledge of, or general experience in, forensic accounting, business valuation, or litigation

Wednesday, November 7, 2018

This session explains how the asset-based approach can be applied to value both operating companies and investment holding companies. This session describes how this approach concludes a marketable, controlling ownership interest. This session explains how the selected asset valuation methods and procedures can be applied to conclude either a going-concern value or a liquidation value of the subject business entity. And, this session presents illustrative examples of two common asset-based approaches valuation methods: (1) the asset accumulation method and (2) the adjusted net asset value method.
At the conclusion of this session, the attendee will be able to: (1) understand when to apply the asset-based approach in a business valuation assignment, (2) distinguish between the asset-based approach to business valuation and the cost approach to property valuation, (3) analyze the conclusions of the asset-based approach with regard to (a) level of value concluded, (b) premise of value concluded, (c) income tax liability concluded, and (d) amount of goodwill concluded.