What is the value in the territory?

The Going-Concern value is a method of determining the value or purchase price for the company. It is assumed that the business will remain "fears" or operation, in the future and will take into account the future potential of earnings. The fact that the company is appreciated on an operating basis distinguishes this method of valuation from the use of the liquidation value. Liquidation uses the price of tangible assets to determine the value and assumes that the company closes its door after sale. The most common reason is to sell. Another reason is to divide assets, perhaps after the collapse of a business partnership or in a divorce where the value of marital assets must be determined. However, determining the value for the company is not an exact science. There are a number of economic models that estimate the value when looking at different indicators, but the two main categories of valuation are the value and liquidation value.

decision whether to use the value of Going-Concern or Liquidation depends on tOm, whether the business remains open or whether it closes its door forever. The value of the liquidation is an estimated what the tangible assets would sell when selling a fire. The value of the liquidation is usually lower than the pedestrian value, because the liquidation tends to require sale for any reasonable conditions without luxury unlimited time to find the best selling price.

The value of the Go-Concern value is the value of the tangible and intangible assets of the company, provided that it remains functional in the future. It includes the liquidation value of the assets, but adds the value of the permanent income current over time and the intangible assets of the company such as good will and reputation. Go-Concer Hrase n is more speculative than the value of liquidation, as it is not possible to estimate the future growth of business with certainty.

One of the important concepts that help to determine the value for running is the concept of the current value of future earnings. The valuation model is not easy to multiply the income of the company year after year. Instead it is a discoThe value that determines the current value of future earnings or what the value of these future earnings would be if they were paid today. The present value as a one -off amount is always less than what value would be over time, since the current payment of the value removes the ability of the compound earnings. It is very similar to the way the lottery pays the winnings, as the amount that is less than the advertised winnings, if it is currently taken at the same time or in the advertised amount.

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