Basically what assets it has like inventory, PP&E, IP, etc. less any debt or liabilities the company has. Typically that sets the bottom range of value. In more

Basically what assets it has like inventory, PP&E, IP, etc. less any debt or liabilities the company has. Typically that sets the bottom range of value. In more distressed situations you would assume the assets are slowly destroyed by the company over time as it continues to operate and wastes the asset before they can be sold.