Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Book Value


The value at which an asset is carried on the balance sheet, usually calculated by subtracting accumulated depreciation from the original cost of the asset.

See Also

Adjusted basis, depreciation, market value.


Book value can also refer to all of the company’s assets minus all of the company’s liabilities. Book value is not to be confused with market value. Book value is strictly used for accounting or tax purposes, whereas market value refers to the value of the company in the marketplace, not for accounting purposes.