Business Valuation Glossary

Fair Market Value Definition


When referring to the transfer of a business asset, the fair market value is defined as a monetary amount that a buyer may reasonably offer, and a seller accept, in exchange for the .

What It Means

The fair market value of an is established when a willing business buyer and a willing seller reach an agreement, with both parties acting in full knowledge of all facts and not being forced to conclude the transaction by circumstances.

See Also