How is a company’s value defined in an Arizona business evaluation if it isn’t necessarily the book value listed on the company’s balance sheet?
There are several definitions of value; all of which may result in materially disparate estimations of value. Each definition of value, correspondingly, is based upon certain specific assumptions. Understanding the definition of value used by a business appraiser is crucial, therefore, to ensuring a fair representation of the value of a community business is established. Generally, the most common definitions of value include book value, liquidation value, investment value, fair value, and fair market value. Depending upon the circumstances, the arguably most appropriate definition of value to be used by an appraiser in a divorce case would be either fair value or fair market value.
