Business Valuation - Assets Don't Dictate a "Basement" Price

Risk, return, opportunity cost and asset marketability must be considered in union with each other in order to properly evaluate the suitability of a potential business acquisition. When doing so, one will quickly ascertain that the fixed assets of a breakeven or cash negative business do not dictate a "basement" price that a buyer should be willing to pay for the business. If there is no return being offered by the seller to entice an investment in the assets (either monetary or other intangible value) then the buyer should discount the assets. If not, what entices the purchase of these assets? The opportunity to lose money each year?

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