Why will someone pay a higher price than the book value to buy a company? | DeZyre

Why will someone pay a higher price than the book value to buy a company?

1

SOHAM

Why will someone pay a higher price than the book value to buy a company?

Book Value And Market Value

Nov 28 2013 12:03 PM

4 Answer(s)

0

kepa.rko

you pay extra for the Brand , Good will , the existing customers in the company etc .

Nov 28 2013 12:50 PM

0

Sharath Kumar

Book value is historical value does not reflect today's actual value.
Extra for intangible assets like brand name, talented management etc..

Nov 28 2013 06:58 PM

0

Vijaya

the share price will always the discount the future. where as the the book value is the purchase price of the asset. it is expalined as market value and book value.

Nov 29 2013 11:04 AM

0

heeralalthakur_05

book value is historical value. whereas market value reflects current value. current value could be high because of so many reasons, like goodwill of company, future prospect of company, competitive advantage of company etc.

Feb 05 2014 08:23 PM

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