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by bruce511
1864 days ago
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The asset either has value, or not, depending on how you use it to extract value. Let's say I have a car. Its value is in getting me to the beach. It has x value to me. Someone else sees the car and imagines getting to work, making money as an uber driver and so on. If his perceived value is higher than my value then its likely we can find a price to agree on. In the same way a business has value according to current revenue and profits. You may have unutilised assets with potential, but that raises the question of why the value is unrealised. In other words, buyers pay for what is, not potential. They look for potential they can exploit, but (except in rare cases) they don't _pay_ for potential, since that is their profit. (and if the potential is in fact an illusion that would be a loss.) If you feel an asset has potential, then by all means exercise that potential, increase the profits, and the business value. (aside: sometimes an asset has value that a buyer is uniquly able to realise, that you cannot. In this case expect around 25% of the actual value to figure into the purchase price.) |
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