This business valuation method is based on the asset value of the company designation based on the accumulated wealth (assets) and reduced by the amount of liabilities and thus simplify enterprise value is equal realistically priced assets of the company minus the actual commitments.

This method is not very popular because of its main weakness is a realistic valuation of assets (property) of the enterprise, which de facto impede any kind of tax optimization and creative accounting, as well as the development of financial instruments resulting in the formation of off-balance sheet commitments. So, although originally this method could be used directly by the owner (as it is, or rather was the easiest), it is now often need to use the assistance of specialized experts - precisely because of the policy applied amount.

It should be noted, however, that the valuation of the company should not be limited to only one of the methods discussed, but it is best to measure a company in several ways - because only then will we be confident that the valuation was carried out in a fair and credible.

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