* robots

Subject: Accounting and Finance

Title : Net Asset Value

Analysis of Value

When a company is closed down and its assets are sold, this is called liquidation. If a company was to go into liquidation, investors would like to know whether the company’s assets would be worth anything, and if so, how much of these net assets would attach to each share. The first piece of information can be read directly from the balance sheet, and requires no further analysis.

Asset Breaker

Sometimes a company has a lot of property that has not been properly valued. The property is worth more than the balance sheet says it is. This makes the company vulnerable to asset breakers.

An asset breaker is an kind of investor who looks for companies that would be worth more if broken up and sold off in little pieces than if taken as a whole. They make their profit by selling the little pieces for more than the bought the company as a whole.

Free SEO web directory
Full document available from Blacksacademy

Permalink - static URL
Page 1 of 1 pages