Business Valuation Report
The Branson Trucking Company As of December 31, 2007 for Dave James
Tuesday 5:30-8:30 PM
November 29, 2011
Dear Dave James,
I have been asked to determine the fair market value of Branson Trucking Company as of December 31, 2007 for the purpose of determine your share in the business.
The definition of fair value market value is the price at which the property would change hands between a willing buyer and willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of all relevant facts.
Based on the information …show more content…
Liquidation Value Liquidation value estimates the value that might expected if assets of the company were subjected to an orderly liquidation, usually over several months. This situation usually only arises when the company is no longer viable as a going concern and the owners want to close up, sell all assets, and pay off liabilities. In this situation, there are usually costs associated with liquidation process, and often there are tax effects. The following table shows the value which could be expected if the company were subjected to an orderly liquidation.
| Book Value | Percent Realized | Liquidation Value | Gain (Loss) Liquidation | Current Assets: | Cash | 218,000 | 100% | 218,000 | 0 | A/R | 610,000 | 90% | 549,000 | (61,000) | Inventory | 165,000 | 50% | 82,500 | (82,500) | Prepaid Expenses | 141,000 | 75% | 105,750 | (35,250) | Fixed Assets: | Land | 650,000 | 100% | 650,000 | 0 | Building & Fixture | 2,920,000 | 100% | 2,920,000 | 0 | Rolling Stock | 4,230,000 | 100% | 4,230,000 | 0 | Investments: | Bond sinking Fund | 340,000 | 90% | 306,000 |