Some leaders of organizations resort to financial valuation of the business. This need arises in various situations, for example, when selling a business, when introducing any new directions, reorganizing, when insuring an enterprise. This work should be performed by a highly qualified appraiser.
Financial appraisal is an analysis of the economic condition of an enterprise. The assessment process is quite complex and time consuming. There are several types of analysis based on the purpose of the test.
Financial appraisal of a business for subsequent sale or purchase. At the same time, they analyze and evaluate the value of all assets on the balance sheet of the enterprise, for example, property, equipment, transport, etc. Information is taken not only about the initial cost of objects, but also their physical wear and tear, the possibility of using individual parts after the property is written off. Thus, a revaluation of the fixed assets is carried out.
The shareholding of the enterprise should also be evaluated. What is it for? The purpose of this procedure is to deal with the sale of a security, and managers can also evaluate shares for subsequent processing of a loan or loan. Papers are also evaluated when they are contributed to the authorized capital. In this case, not only the market price of the shares is revealed, but also forecasts of the future prospects of their use are made.
Financial appraisal of business in insurance. In this case, the appraiser must obtain information about the payments under the insurance contract in the event of an insured event, for example, in case of loss of assets.
Financial appraisal in case of reorganization or merger of an enterprise. In this case, the appraiser must assess the economic condition of the organization, propose an alternative solution, calculate the maximum efficiency when choosing one of the proposed options. All this information is provided to the manager, on the basis of which he makes a decision.
From the foregoing, we can conclude that a financial appraisal is an appraisal of a business for the purpose of carrying out any operations related to generating income.
