In the context of valuing a business or business assets, the special value basis captures the set of characteristics that make the business or its assets valuable to a specific investor.
What It Means
Special value is what a particular investor or group of investors believe the assets to be worth due to some unique advantages to be realized from the asset acquisition.
Special value is quite different from the business market value which disregards any special or synergistic benefits to the investor and requires only the presence of hypothetical willing buyer and seller parties. Indeed, the difference between the market value and special value is what creates interest on the part of these synergistic investors.
Special value is one of the several bases of value defined under the International Valuation Standards.