The asset based method views the business as a set of assets and liabilities that are used as building blocks to construct the picture of business value. Since every operating business has assets and liabilities, a natural way to address this question is to determine the value of these assets and liabilities. The difference is the business value.

However, the Net Asset Value reflected in books do not usually include intangible assets and earning potential of the business and are also impacted by accounting policies which may be discretionary at times.

Thus, NAV is not perceived as a true indicator of the fair business value. However, it is used to evaluate the entry barrier that exists in a business and is considered viable for companies having reached the mature or declining growth cycle and also for property and investment companies having strong asset base.

To know how we can assist you with our Valuation Services, please contact:

Mr. Chander Sawhney
Vice President
Corporate Professionals
+911140622252, +919810557353

Mr. Maneesh Srivastava
Sr. Manager
+911140622253, +919871026040,