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141 assumptions (some of which are not based on direct empirical information) must be made. The discussions and calculations presented in the previous paragraphs result in an estimate of the subject’s operating value on a 100% control, As if freely traded basis. Recall that the net tangible assets were already calculated using the fair market value standard which includes any discount for lack of marketability and the capitalization rate for the excess earnings used to calculate the intangible asset value had purposely included a factor for the illiquid nature of closely‐held companies. However, it must be pointed out that the non‐operating assets have not been adjusted for its illiquidity at this time. This will be handled in a subsequent section regarding appropriate discounts. Based on the foregoing
discussion and analysis, the
operating value of the subject, using
the Adjusted Book Value Method, including the formula approach to valuing intangible assets under the asset‐based
approach, consists of two
components and is shown below Share with your friends: 
