The asset-based valuation approach is not especially effective in helping a prospective buyer decide what to pay for a firm. Historical costs shown on the balance sheet may bear little relationship to the current value of the assets. (The book value of an asset was never intended to measure present value.) Although the three variations adjust for this inherent weakness, they build an estimate of value on a weak foundation. All asset-based techniques fail to recognize the firm as a going concern. However, the liquidation value technique does yield an estimate of the value that could be realized if the business were liquidated, which is sometimes good information to have.