How To Evaluate The Value Of A Company

Table of contents:

How To Evaluate The Value Of A Company
How To Evaluate The Value Of A Company

Video: How To Evaluate The Value Of A Company

Video: How To Evaluate The Value Of A Company
Video: 3 ways to value a company - MoneyWeek Investment Tutorials 2024, December
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A gradual increase in the market value of a company, as well as an increase in the number of business purchase and sale transactions, leads to the need for more efficient asset management. In turn, this raises the question of the independence of the assessment of the value of the business. Valuation helps entrepreneurs correctly assess the value of a company before entering into a deal with it.

How to evaluate the value of a company
How to evaluate the value of a company

It is necessary

  • - documents on movable and immovable property;
  • - documents required for business valuation;
  • - documents on intellectual property.

Instructions

Step 1

Using the list of required documents (information on the purchase, rental of equipment, copies of technical expertise certificates, etc.), assess the value of all movable property (machine tools, cars, equipment, production lines, office equipment, household items and other objects).

Step 2

Conduct a property value analysis. To do this, use the documents confirming the rights to the object, BTI documents, information about the boundaries of the object, information about the structures that are part of the object. Establish the final cost of real estate taking into account the market value of a similar object and the cost of building a new object.

Step 3

Using accounting reports for the last 3-5 years, the results of the last audit, information on intellectual property, as well as information on accounts payable and receivable, determine the value of securities, assets, and intellectual property of the company.

Step 4

Summing up all the components (the value of movable and immovable property, intangible assets, shares, intellectual property, etc.), estimate the total value of the company.

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