How would you go about determining the value of the assets of a business if you were unfamiliar with them?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The best way to go about this (if you are trying to affix a value to the physical assets of the business as opposed to the value of the business as a whole) is to determine the “book value” of the assets that the firm has on hand.  The way to do this is to take a complete inventory of what the business currently owns.  You must then try to determine what it is worth.  You need to look at what it would cost to replace all of the things the business owns.  You would then need to subtract some amount from the value of any equipment that is old and/or damaged.  This would give you an estimate of the value of a business’s assets.

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