How To Determine The Value Of A Company

Table of contents:

How To Determine The Value Of A Company
How To Determine The Value Of A Company

Video: How To Determine The Value Of A Company

Video: How To Determine The Value Of A Company
Video: 3 ways to value a company - MoneyWeek Investment Tutorials 2024, December
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The value of the company is determined by the data of the results of its activities. When evaluating a business, they analyze financial, organizational and technological indicators, as well as prospects for growth and development. In addition, they calculate the value of all the company's assets - real estate, equipment, intangible assets, etc.

How to determine the value of a company
How to determine the value of a company

It is necessary

  • - accountant;
  • - documentation;
  • - appraiser.

Instructions

Step 1

If you need to know the value of a company, do it yourself or seek help from an independent appraiser. If we are talking about a small company engaged in the service sector, trading activities, etc., you can resolve the issue without resorting to the services of third parties. Ask your accountant for help and ask them to prepare reports.

Step 2

Find out at what price companies similar to yours are selling. To do this, visit one of the sites for selling a business. Compare the main indicators of your company and those of your competitors. If you are superior to your competitors in some way, then your company will cost more. In any case, after conducting this research, you will get some idea of the approximate value of your company.

Step 3

Estimate the cost of all movable property - office equipment, furniture, equipment, transport, goods, etc. Then analyze the real estate. Use documents confirming the right to this building, the BTI plan, information about the boundaries of the object, etc. Inquire about the cost of similar items. If you are renting a room, check how much it costs to rent a similar area in similar buildings.

Step 4

Review accounting reports for the last 2-3 years. Check information about accounts payable and receivable, find out the value of securities, intellectual property, etc.

Step 5

Collect all the results of the work done. Sum up the obtained indicators. Be sure to take into account the value of real estate, equipment, stocks, intellectual property and other factors that determine the price of a company.

Step 6

If after the work done you still have questions or doubts, invite a specialist. Based on the available documentation and other data, a professional appraiser will calculate and name the real market value of your company.

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