Valuing an asset when there is no buyer
Mark Lipson says “Valuation of real property or a business is a mixture of art and science. The science relates to the objective facts and analysis. The art refers to the valuer’s experience relied upon when determining a valuation opinion from the facts and the analysis undertaken.
“I should point out that there is a difference between value and price.
“Price is determined by the bargaining process between the buyer and seller, where they agree on a particular price to transfer an asset. But in circumstances where that is not going to occur, I have to determine the value using a market-based assessment of that business as if there is a hypothetical buyer and seller who are prepared, but not anxious, to enter into negotiations for that business.”
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Reproduced with permission from Inside Family Law: Conversations from the Coalface, by Zoë Durand, 2018 published by Longueville Media.