Estimation of business

Business assessment includes determination of cost of the company as the property complex, capable to make profit for his owner. During business assessment the cost of all assets of the company is defined: real estate, cars and equipment, warehouse stocks, financial investments, intangible assets. Besides, overall performance of the company, present and future income, prospects of development and the competitive environment in this market is separately estimated. On the basis of such complex analysis the real cost of business can be defined.

As a rule, the estimated enterprise is very difficult structure uniting in a large number of assets of absolutely different nature. Therefore, the assessment of business needs to be carried out from positions of all three estimated approaches: expensive, profitable and comparative. These approaches aren’t used separately, and mutually supplement each other. Business assessment is very difficult and many-sided process. The one who seriously decided to learn business cost can’t do it without participation of the skilled and qualified appraiser.

The assessment of business is necessary in case of:

• Full or partial sale of the enterprise;
• Development of the business plan;
• Business / the enterprise restructuring;
• Any carrying out operations with enterprise securities;
• Carrying out insurance operations;
• Receiving credit;
• Revaluation of assets of the enterprise for the purpose of accounting;
• Issues of securities;
• Definition of base of the taxation;
• Solvency of the enterprise;
• Rent definition at business rent;
• Corresponding judgments;
• Adoption of administrative decisions.

Within business cost is estimated:

• Equity stakes, bills, other securities;
• Shares in an authorized capital of the enterprise;
• Complete property complex;
• Rights of the requirement.

The list of documents and information that isnecessary for a business assessment:

• Copies of constituent documents;
• Copies of prospectuses of issue, reports on results of issue of securities (for joint-stock companies);
• Kinds of activity and organizational structure of the company;
• Copies of lease contracts on real estate;
• accounting reports for the last 3-5 years (or possible quantity of the previous periods);
• Balance sheet;
• Profit and loss report;
• The last conclusion of the auditor (if the audit inspection was made);
• Sheet of fixed assets;
• Inventory lists of property;
• Data on all assets (real estate, stocks, actions of third-party societies, bills, intangible assets and so forth);
• Accounts payable interpretation;
• Information on existence of subsidiaries, holdings, financial documentation on them;
• The enterprise development plan for the next 3-5 years with the indication of planned gross revenue from the goods/services, necessary investments, expenses, net profit. This list of documents has preliminary character and can be reduced or expanded after detailed acquaintance of the appraiser with a task for examination.