When is an enterprise valuation carried out?

The estimation of the enterprise is the definition of the real market value of the assets and liabilities of the enterprise.

К последним относятся недвижимость, транспорт и working equipment, stocks in warehouses, customer base, brand, personnel. In addition, the valuation of the enterprise is designed to determine the effectiveness of its activities, revenue, growth prospects and market analysis. As a rule, both tangible and intangible assets, business potential and investment profitability are valued.

The valuation of the enterprise determinesthe market value of an enterprise with its obligations and rights. The procedure includes financial and organizational analysis of the company's activities.

Такая экспертная оценка очень актуальна в наше time, so more and more valuation companies offer this service. The market for the purchase and sale of enterprises is developing very dynamically, accordingly, the need for a qualitative assessment is also increasing.

Особенность оценки предприятий – рыночный character. Therefore, when determining the cost, not only the costs of creating a similar enterprise, but also factors that influence the market and the value of the object are taken into account. The valuation of the market value of an enterprise is a marketing and financial instrument that is used for various purposes. Competently carried out the assessment ensures the reliability of transactions, risk avoidance, business establishment.

Objects that are included in the valuation of an enterprise include residential and non-residential real estate, land, machinery and equipment, stocks and securities, real and mandatory rights, etc.

Enterprise Valuation: Goals

The company is subject to evaluation in the following cases:

• its full or partial sale;
• exit one or more community members;
• its restructuring (merger, separation, absorption, liquidation);
• the need to make a contribution to the authorized capital;
• increasing the efficiency of management activities;
• the need to get a loan secured by the assets of the company;
• implementation of an investment project;
• property sales;
• sales at auction in bankruptcy;
• determine the creditworthiness of the company;
• optimization of the pricing structure of the property;
• business plan development;
• transfer of property rights;
• implementation of management decisions.

Naturally, in addition to the above, there are other assessment objectives, which may vary depending on the specific case.

In the evaluation may be interested asowners or shareholders of the company, and its partners. Most often, the valuation of an enterprise is carried out for the purpose of selling it, so a potential buyer may require an assessment.

In addition, enterprise valuation is necessary fordetermining the value of shares, securities, shares in the capital, as well as when repurchasing shares, appealing an alienation decision and other similar cases. There is also such a thing as an assessment of the liquidation value of an enterprise, that is, the net amount of money that an owner can receive in the event of liquidation of an enterprise and sale of assets.

The standard evaluation report includesdetailed description of the company, financial diagnostics of the company, assessment of solvency, analysis of the industry and the market as a whole, description of the methods used in the assessment, calculation of the company's value taking into account the development potential, results, their interpretation and conclusions.