Assessment of the enterprise is the definition of the real market value of the assets and liabilities of the enterprise.
The latter include real estate, transport and work equipment, stocks in warehouses, customer base, brand, staff. In addition, the valuation of the enterprise is intended to determine the effectiveness of its activities, the establishment of income, growth prospects and market analysis. As a rule, both tangible and intangible assets, business potential and profitability of investments are evaluated.
Assessment of the value of the enterprise determines the market value of the enterprise with the obligations and rights belonging to the enterprise. The procedure includes financial and organizational analysis of the enterprise.
Such expert assessment is very relevant in our time, therefore, more and more assessment companies offer this service. The market for the sale of enterprises is developing very dynamically, respectively, the need for a qualitative assessment is also increasing.
The peculiarity of the valuation of enterprises is the market nature. Therefore, when setting the cost, not only the costs of creating a similar enterprise are taken into account, but also factors that affect the market and the value of the object. Assessment of the market value of an enterprise is a marketing and financial tool that is used for various purposes. A properly conducted assessment ensures the reliability of transactions, risk avoidance, and business establishment.
The objects that are included in the assessment of the enterprise include residential and non-residential real estate, land, machinery and equipment, shares and securities, property and binding rights, etc.
Valuation of the enterprise: goals
The company is subject to evaluation in the following cases:
- its full or partial sale;
- the exit of one or more participants from the community;
- its restructuring (mergers, spin-offs, takeovers, liquidations);
- the need to make a contribution to the authorized capital;
- increase management effectiveness;
- the need to obtain a loan secured by company assets;
- implementation of the investment project;
- property sales;
- bankruptcy auction sales;
- determining the creditworthiness of the company;
- optimization of the price structure of property;
- development of a business plan;
- transfer of property rights;
- implementation of management decisions.
Naturally, in addition to the above, there are other goals of the assessment, which may vary depending on the specific case.
The evaluation may be interested both the owners or shareholders of the company, and its partners. Most often, the valuation of an enterprise is carried out with the aim of selling it, so a potential buyer may require an assessment.
In addition, the valuation of the enterprise is necessary to determine the value of shares, securities, shares in the capital, as well as in the repurchase of shares, appeal of the decision on disposal and other similar cases. There is also such a thing as an assessment of the liquidation value of an enterprise, that is, the net amount of money that the owner can receive in the event of liquidation of the enterprise and sale of assets.
The standard assessment report includes a detailed description of the company, financial diagnostics of the company, solvency assessment, analysis of the industry and the market as a whole, a description of the methods used in the assessment, calculation of the company's value based on development potential, results, their interpretation and conclusions.