How To Determine The Value Of An Enterprise

Table of contents:

How To Determine The Value Of An Enterprise
How To Determine The Value Of An Enterprise

Video: How To Determine The Value Of An Enterprise

Video: How To Determine The Value Of An Enterprise
Video: An example of how to calculate the value of my small busine 2024, December
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The value of the enterprise is made up of existing assets: the liquidation price of equipment, the market or cadastral price of real estate, and total income for the current period. Business appraisal is required for sale, collateral, liquidation related to bankruptcy of an enterprise, or for a new approach to management decisions.

How to determine the value of an enterprise
How to determine the value of an enterprise

It is necessary

  • - act of independent examination;
  • - certificate of cadastral value;
  • - an audit report.

Instructions

Step 1

The market price of an enterprise can be determined based on the estimated value of independent experts. Contact a government licensed agency for an independent business appraisal.

Step 2

The value of assets: machine tools, office equipment, other equipment is made taking into account the percentage of their wear or service life. Based on the full assessment, an estimated estimate is issued with an indication of the price of each of the names of available assets.

Step 3

To determine the exact profit figure, you can involve a chief accountant or contact an auditing company, which will draw up an estimate based on an audit of the financial activities of the enterprise. Most often, an audit company is invited to carry out calculations if a bankruptcy proceeding is underway and a bankruptcy trustee is appointed. In this case, usually all persons responsible for financial activities are suspended from the performance of their immediate duties.

Step 4

In case of bankruptcy, the real estate assets of an enterprise are valued based on the cadastral value, which may differ significantly from the market price. To do this, they invite cadastral engineers from the bureau of technical inventory and the cadastral chamber for a unified land registration. Based on the inspection, new technical documents are drawn up, changes are made to cadastral passports and the value of the enterprise is calculated based on the instructions of the current legislation.

Step 5

If an enterprise appraisal is needed to sell a business, you can focus on the market value of similar companies. Any owner has the right to sell an existing business for the amount that suits both parties, the seller and the buyer. Therefore, the valuation of assets in this case is completely optional.

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