Starting internet business

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Starting internet business BOOK VALUE
The most obvious asset value that a prospective purchaser can examine is the book value. In a situation with many variables and unknowns it provides a tangible starting point. It is only a beginning, however; the company's accounting practices, as well as other factors, can significantly affect book value. For example, if the reserve for losses on accounts receivable is too low for the Starting internet business it will inflate book value, and vice versa. Similarly, treatment of asset accounts such as research and development costs, patents, organization expenses, and so on, can vary widely. Nevertheless, book value provides a good point of departure.

Starting internet business ADJUSTED BOOK VALUE
An obvious refinement of stated book value is a value adjusted for large discrepancies between the stated book and actual market value of Starting internet business assets such as buildings and equipment, which may have depreciated far below their market value, or land, which may well have appreciated. Substantially above a book value that stands at the original cost. An adjustment would probably also reduce the book value of intangible assets to zero unless they, like the tangible assets, also have a market value. A figure resulting from these adjustments should represent the value of the company's Starting internet business more accurately than stated book value.

Starting internet business LIQUIDATION VALUE
One step beyond adjusted Starting internet business value is considering the net amount that would be realized if the assets of the company were disposed of in a quick sale and all liabilities were paid off or otherwise settled. This value would take into account that many assets, especially inventory and real estate, would not realize as much as they would if the company continued in operation or was sold more deliberately. This calculation would also allow for the various costs connected to carrying out a Starting internet business sale.
The liquidation value, it should be noted, is an indication only of what might be realized if the firm were liquidated immediately. Should the company continue in operation and encounter difficulties, a subsequent liquidation would be most likely to yield significantly less than the liquidation value calculated for the Starting internet business in its current condition.
The liquidation value of a company is not usually important to a buyer interested in maintaining a going concern. However, this value might represent some kind of a floor price below which the seller would be unwilling to go.