Archer, Maddie and Dillon have been told that if they wish to fully acquire Sea Salt Surf Ltd, it would cost approximately $50 million. From the balance sheet, they can see that the total assets of the company are approximately $42.5 million, but the company also has total liabilities of close to $6.8 million, leaving the net assets of the company at just over $35.7 million. Archer, Maddie and Dillon have come to you for advice because they are not sure why it would cost $50 million to purchase a company that has only $35.7 million of net assets. Advise whether the value of a company will or will not be equal to its net assets. Explain why this is the case and provide examples to assist in your explanation.