Price Assets

Independent experts estimate the real liquidation value of each unit's assets separately, and the results are added, forming a firm price. Accounting estimate net worth (Net Worth Per Books Approach) Rarely used. Price is determined as the result of subtracting the amount of firm commitments from the sum of its assets. This score is used as an additional argument in the negotiations. Method IRS (Internal Revenue Service Method) is used primarily to determine the tax on gifts, inheritances, etc., are deducted from the assets of the firm 'intangible assets' and liabilities. The result is added under-capitalized industry average 'normal' rate of an additional revenue stream from the 'good name'. The method of comparable transactions (Comparable Sales Method) is used for reliable data about sales of similar companies, financial records which available for analysis and tested by independent experts.

Past transactions compared with the estimated firm and made line-item specification, designed to answer the question: 'What would have cost our company, if it sold as well as analog? " The method of multiplier Price / Earnings (Price / Earningns Ratio Method) mainly applicable for large joint-stock companies whose shares are traded on the Stock Exchange. Selected number of such companies. Calculated ratio (D / D) market price to earnings per share, and then average those relations. Net income after taxes, estimated the company produced, multiplied by the resulting average ratio of D / D and gives the option prices firm as the price of the aggregate of all of its shares.

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