Assessing the real value of a business may be required in various situations: when attracting investments, buying and selling a business, drawing up a business plan for further development, and so on. Determining the procedure for assessing the value of a business is the value of the company's assets.
It is necessary
- - data on the company's assets (financial investments, real estate, equipment, warehouse stocks, intangible assets);
- - data on the efficiency and income of the business object for the longest possible period of time.
Instructions
Step 1
The value of a business is a reflection of its performance. Calculation of the cost is necessary to make the right decisions regarding the future development of the enterprise, as well as when deciding the sale and purchase of the owner's rights or investing in this business object.
Step 2
Carry out a business valuation in several stages. Collect information about the subject of assessment based on documentary evidence of all collected data. Conduct an analysis of the market sector to which this business belongs, consider similar property complexes.
Step 3
Make calculations according to the main approaches to business valuation. For example, to evaluate a business as profitable, use three main approaches: profitable, cost, and comparative. Reconcile the results obtained when performing calculations using different methods.
Step 4
When conducting an appraisal examination, consider the value of all assets of the company:
- financial investments;
- real estate;
- equipment;
- warehouse stocks;
- intangible assets.
Step 5
Since a business is an investment product, since costs and revenues are spread over time, to determine the real value of the business, take into account the data for the longest possible period of time and evaluate separately:
- business performance;
- available, present and planned income;
- development prospects;
- the level of competition in this business sector.
Step 6
Consider the following factors as determinants of market value:
- current and future profits, costs of creating a similar business at the present stage (the same tangible and intangible assets and position in the market);
- the ratio of supply and demand for property complexes;
- similar to the evaluated business, the time of receipt of income, as well as the liquidity of assets.
Step 7
If the purpose of conducting a business appraisal is to perform certain legal actions with a business object, consider engaging an independent appraiser with an appropriate license, since an official opinion on the company's value will be required.
