What is fair market value in a forced sale?

A practical valuation answer

Fair market value is generally the price a willing buyer and a willing seller would agree to in an open market, with both sides informed and under no compulsion to act. In practice, the number depends on the valuation date, the rights being valued, and the facts that make the business more or less transferable.

For this type of engagement, the analysis usually focuses on the compensation standard in the governing regime, business loss versus asset value, and evidence of income, disruption, and replacement difficulty. That is how the answer moves from a generic opinion to a defensible valuation conclusion that fits the facts.

Core valuation checklist

• Confirm the valuation purpose, date, and standard of value before starting.
• Collect the records that matter most: financial statements, tax returns, ownership documents, contracts, and any relevant legal or tax materials.
• Analyze the compensation standard in the governing regime, business loss versus asset value, and evidence of income, disruption, and replacement difficulty.
• Document assumptions clearly so the conclusion can be explained to buyers, advisors, counterparties, or the court if needed.