Features Of Enterprise Valuation

Modern online business is usually viewed as a solution that’s purchased, being sold, mortgaged, etc., along with, like any item, a company ought to have the real price of its, concentrating on what, it is going to be easy to handle some promote transactions with it. To determine this indicator requires an independent assessment of the value of the business. It cannot be dispensed with during the reorganization and development of the enterprise, the privatization and mortgage lending, participation in the functioning of the stock market, etc. Independent business valuation helps to determine in monetary terms the value of the enterprise, taking into account its utility and costs associated with the achievement of this utility. The object of evaluation can be any property of the enterprise, i.e. any property objects and rights to them. In this way,

Of particular importance is the assessment of the market value of the enterprise in an unstable Russian economy, which directly affects the position of domestic companies in the domestic and foreign markets. It is advisable to apply this procedure already at the stage of the establishment of the enterprise, when it comes to talking about contributions to its share capital. In addition, it is impossible to do without evaluating the business plan in the development of investment projects involving large investments with various risks.

Enterprise valuation:

Business is a special kind of goods, so the principles, approaches, models and methods for estimating the value of an enterprise also require special ones. Any enterprise is a complex system with its own unique properties. Firstly, it is an investment product, investments in which imply a return in the future. Secondly, the demand for this product depends not only on external factors, but also on the processes occurring within the product itself. Thirdly, an enterprise is a property complex that includes all types of property: land, buildings and structures, equipment and machinery, products and raw materials, intangible assets, intellectual property, etc., and all this can be sold as whole, or separately.

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An enterprise is a property complex used for conducting commercial activity. In this case, referring to the property complex as a set of movable (machine tools, other equipment, vehicle fleet, communications, raw materials and product remnants in warehouses, etc.) and immovable (any buildings of completed and unfinished construction, land) should be assessed comprehensively as a business.

Property complex may be the subject of property transactions as a separate object, thus becoming the object of evaluation.

  • The purpose of assessing the value of the property complex
  • Valuation of the property complex is required for:
  • Registrations of the purchase and sale transactions of the whole or its individual parts
  • Correct reflection of the value of the property of the enterprise in the reporting
  • Making IC as a collateral for a loan in financial institutions
  • Inclusion of property in the authorized capital of the enterprise
  • Under a commercial concession
  • Resolving property disputes in courts

Making strategic management decisions:

  • During auctions, tenders and contests
  • Also, the assessment will be needed in the case of:
  • Restructuring or liquidation of an enterprise
  • Registration of insurance policies on property of the enterprise
  • Transfer of objects in the rental or leasing
  • Evaluating the effectiveness of company property management
  • Reports to tax or other government agencies
  • Reports to shareholders of the company and in other cases
  • When developing an investment plan
  • Documents for assessing the property complex of the enterprise
  • IC consists of a variety of different types of objects, for the evaluation of which it is required to submit a wide variety of documents.
  • We list the required most often:
  • Documents with information about the customer assessment;
  • Certificates of registered rights to each of the objects of IC;
  • Technical passports of BTI for buildings, structures, buildings of IC, including floor plans;
  • Certificate of rights (owner, tenant, etc.) on the land plot where the IC is located;
  • Cadastral scheme of the land plot;
  • Data on the cost of land use (land tax or annual rent price);
  • Documents on technical and vehicles included in the property of the enterprise;
  • Documents for engineering, technical and communication systems IC;
  • Information on available costs for operation, reconstruction, repair of facilities of IC (if any);
  • Data on the availability of IK leases, collateral or debt.
  • *** The list of documents is indicative.

After meeting a specialist with a specific assignment for the assessment and a detailed analysis of the specifics and condition of the property complex being assessed, we request all required documents from the customer, based on the need to evaluate specific IC objects.

You can also familiarize yourself with more detailed sets of documentation for real estate valuation, transport, equipment, etc. in the relevant sections of our site.

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