Why do we need an assessment of the property of the organization?
- Improving the effectiveness of current methods of managing the organization;
- Determining the price of securities in the case of the sale and purchase of shares of an organization on the stock market. A justified investment decision is made only in cases where there is a clear idea of the price of ownership of the enterprise, or its share attributable to a certain block of shares. Important in the procedure is the assessment of possible future income from the business;
- Determination of the value of the organization in the case of the sale or purchase in whole or in part only;
- Enterprise restructuring – the legislation obliges an independent assessment of the organization’s assets in case of its liquidation, merger or acquisition, separation. Here it is important to determine the purchase or repurchase price of shares, conversions, and the amount of the premium that is paid to shareholders of the company being acquired;
- Develop an organization development plan. In the process of strategic planning of the organization, it is very important to correctly assess the future profitability of the organization;
- Determination of the creditworthiness of the organization and the value of collateral for lending. In such cases, an assessment of the property of the organization is necessary, since the value of assets in the financial statements may differ significantly from the market value;
- Taxation. In determining the taxable base, an objective assessment of the company must be made;
- Making informed management decisions. Inflation can significantly distort the financial statements of the organization, therefore, periodically carried out property valuation by an independent appraiser allows to increase the realism of the output reporting, which will serve as a basis for making important financial decisions.
What does the valuation of an organization include?
Real estate valuation. Determination of the cost of buildings, buildings, and other structures that belong to the organization – and all that is somehow connected with the land (objects whose movement without sufficiently strong damage is impossible).
Land valuation. To determine the market value of a land plot or the market value of lease rights, land valuation is the most relevant way to solve the problem. The market valuation of the land may depend on such factors as the price level, competition in the land market, location, and market potential of the area, as well as on the expected income from use. In addition, there are also specific factors related to the purpose of the land being valued (for example, fertile soil, etc.).
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Evaluation of vehicles. This refers to the assessment of cars, trucks, containers and other transport equipment. Also distinguish between motor vehicles, rail, air, sea, river and pipelines. Evaluation of vehicles can be carried out, both individually and as part of the property complex of the enterprise. The most common type of assessment is the assessment of the car – it is carried out by calculating and adjusting the price depending on the main pricing factors: year of production, initial cost, mileage, technical condition.
Evaluation of equipment. The valuation of the entire spectrum of movable property — technical complexes, devices and industrial devices, machine tools and technological installations, production lines and office equipment, furniture, household items and other objects that can be attributed to movable property. Assessment of equipment is often the only option to determine the real value of assets of an enterprise.
Mandatory independent assessment of the property of the organization and voluntary:
An independent examination of the property of the organization may be voluntary or independent.
Mandatory assessment of the property of an organization is carried out when objects partially or fully owned by the state are involved in the transaction for the purpose of their privatization, leasing, pledge or trust management. In addition, an independent appraisal is also mandatory in cases when a dispute arises about the price of objects belonging to the Russian Federation when buying out or withdrawing property from owners for municipal or state needs. The legislator points out the importance of an independent examination in the event of a dispute about the calculation of the taxable base, in mortgage lending to individuals and legal entities, as well as when drafting a marriage contract or when dividing property for divorce.
Voluntary independent expertise is carried out in case of insurance, restructuring, and reassessment of the company’s taxable base and in many other cases.
The company “Active Business Consulting” offers an assessment of the property of the organization in a short time, but with the accuracy and scrupulousness that information deserves – the main foundation for making important decisions.