If you're considering putting your business on the market or looking to purchase a commercial property, finding out the economic book value is just one financial calculation used for comparison purposes between properties. Current market value is the driving force behind an economic book valuation that includes inventories, real estate and other business assets.

Economic book value advice can come from a number of sources, including experts in the field, consultants and even web-based calculators and other information. Getting a handle on what your business is worth can help you in many different business decisions, not just when it comes to selling, and can even lead to strengthen strategies for growth opportunities.

Consider the following economic book value information:

1. The final sale comes down to more than just economic book value. It depends on a number of other factors including market conditions, terms and the type of buyer you snag.

2. Economic book value, income projections and liquidation asset value go into determining an asking price or range for a business.

3. Along with economic book value and other financial calculations, the general business economic climate must be taken into account as well.

Action Steps
The best contacts and resources to help you get it done

Get an idea of how economic book value is calculated

Economic book value refers to the books, the actual finances and accounting of the business. In the most basic sense, calculations include original cost value minus depreciation, and the total amount of assets minus any liabilities.

I recommend: Economic value added calculations and how they compare to other financial numbers are explained by 12Manage-The Executive Fast Track. Focus Magazine provides charts and a detailed analysis of cost of capital and economic profit.

Receive economic book value consulting services

You're going to need a financial adviser or consulting service to help you calculate economic book value correctly and help you with any merger or acquisition issues. Since the valuation numbers used to sway buyers are so important, you'll want to make sure the valuation is completed properly.

I recommend: Enterprise Value Consulting's services include business valuation, merger and acquisitions work and purchase price allocation, among others. Next Value provides valuation strategy and management consulting.

Find an economic book value expert

Misrepresentation of valuations can land you in legal trouble if you're not careful. But there are a variety of experts available that also provide litigation support if the need should ever, unfortunately, arise. Forensic accounting firms can also help you head off legal challenges to an economic book value.

I recommend: Considered experts in their field for litigation purposes, check out Anderson Economic Group and Smith Economics Group.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A consultant for economic book value will also look at your business's intangible assets, or the difference between book value and current market value. A good consultant can also advise you on strategies to maximize existing assets into the future.