At the present stage of development of the business market and the world economy, the evaluation of intangible assets and intellectual property has become just as important as the material ones. The role of objective analysis and accurate determination of the value of the business has increased. This procedure is simply necessary for those who are planning to invest, buy or sell enterprises. Independent assessment of the value of the company in such situations becomes an important management tool that will provide an opportunity to make the right choice, avoid many risks and get the maximum profit. Even the most profitable business in Russia will not be able to fully function and expand without a qualitative assessment at one of the stages of development.
What is business valuation?
Business valuation is a procedure for determining the market value of an enterprise (including tangible, intangible assets, financial condition, expected profit), which is carried out by official bodies or experts. The object of evaluation can be any property in conjunction with a package of rights to it. The meaning of the term “business valuation” is slightly different. It implies the definition in a monetary ratio of the value of the enterprise, which includes (except for assets) its usefulness and expenditures made to obtain it.
The main purpose of the assessment is to establish for the client the value of the market value of the assets being valued. The customer initiates a business valuation, as a rule, in the event of the sale or purchase of a company, equity interest, crediting, financing projects, improving the efficiency of enterprise management, etc. Often there are situations when several reasons are combined.
When do you need a business valuation?
Increasing the value of a business is one of the important indicators of its profitability, a decrease indicates the need for changes in the management system and development strategy. In carrying out an objective assessment may be interested as the owner of the company, and a third party.
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The value of the enterprise is determined by:
A comparative method for determining the value of an enterprise means a set of valuation methods that are based on a comparison of the subject property with competing objects (with similar characteristics, availability of information on transaction prices). Experts believe that it is he who gives the most accurate results (of course, subject to the active work of the market for similar properties in terms of properties). For this approach, market data on similar objects and the method of capital market, transactions and industry ratios are used (with benchmarking elements – comparative analysis on benchmark indicators).
Receive report with results:
The calculation after the dismissal of their own will prepare the accounting department of the organization (checklist, certificate of the amount of wages, other payments and rewards), and only the appraiser prepares a report on the business valuation. An appraisal report is a document compiled in accordance with the Federal Law “On appraisal activities in the Russian Federation” and the Federal Appraisal Standard, which must contain an appraiser’s professional judgment confirmed on the basis of the collected information and calculations regarding the value of the subject property.
Top best rated companies:
The choice of an appraisal company is made on the basis of several criteria. Each customer chooses the most important for them. We propose to consider a brief analysis of the activities and quality of the services provided by several leaders in the consulting market.