How can we VALUING A BUSINESS before we invest into it??
Business valuation is the assessment of economic value for that business.
It is important to be able to create a range of values for a business; from high to low.
I was involve in process of buying a business in my hometown which is in remote village.I has been called to help my relatives to asses the worth of the business.
If you buy the assets, then you may have no responsibility for liabilities. The sale will be governed by the Bulk Sale Act. If you buy the stock, then you will become responsible for the liabilities.
Goodwill is the ability to make above average profits. If the firm you are purchasing is not making a return on assets (ROA) above the average in the industry then you can argue that there is no goodwill.