Standards of value
Fair market value – a value of a business enterprise determined between a willing buyer and a willing seller both in full knowledge of all the relevant facts and neither compelled to conclude a transaction.
Investment value – a value the company has to a particular investor. Note that the effect of synergy is included in valuation under the investment standard of value.
Intrinsic value – the measure of business value that reflects the investor’s in-depth understanding of the company’s economic potential.
Premises of value
Going Concern – Value in continued use as an ongoing operating business enterprise.
Assemblage of assets – value of assets in place but not used to conduct business operations.
Orderly disposition – value of business assets in exchange, where the assets are to be disposed of individually and not used for business operations.
Liquidation – value in exchange when business assets are to be disposed of in a forced liquidation.