Yes! There is a significant difference between book value and fair market value.
“Book value” is an accounting view of the business. This approach reduces the value of items owned by a business for tax purposes based on total assets minus total liabilities As a result, “book value” does not provide an accurate economic or market value perspective on the entire business and its operation.
“Fair Market Value” identifies the true economic value of a business, its assets and its income generating capacities. There are many techniques involved in calculating the “fair market value” of a business to ensure accuracy and fairness. Consequently, this perspective is what a potential buyer and willing seller would agree on when a business is sold, neither being under compulsion to buy or sell and both having reasonable knowledge of relevant facts.