Assessment of business value is carried out by a specialized independent company, which does not take part in projects (for example, investment) related to the subject. It is the specialist who becomes an independent arbitrator, which conducts a full range of measures in order to determine the real market value.
Business assessment involves the study of material assets (equipment, transport, structures and buildings, land, production and warehouse space, etc.), a market assessment of business, determining profitability at the time of study and in the future.
Be sure to work in this area to calculate the market price of the enterprise, since in most cases this indicator diverges from the price that the current business owner offers. Of course, the assessment of the enterprise takes into account the interests of the seller and the buyer, is independent, which gives less reasons for distrust and anxiety.
Before performing a business research, a specialist should understand the following issues: to know competitors, the demand for this type of business in the market, the level of competition in the proposed segment. When performing the work, the situation that has developed at the time of amendment measures in the market is taken into account, a forecast for the future is made. It is difficult to predict, but the specialist must do this work based on his experience and available knowledge in this field.
An independent assessment of the business, the assessment of buildings have their own reasons, including the main investment projects, the key to real estate to obtain lending and attract investment in projects, liquidation of business, insurance, business sale and sale transactions, etc. This type of service can use both the owner of the enterprise and the buyer to determine the real price, which will be argued by the report. In addition, investors who want to know the answer to the question often resort to the service: “Is it profitable to invest in this type of business?”. The buyer does not want to overpay his money for beautiful stories and air. In his case, the real facts reflected in the report on the assessment in the form of certain numbers and indicators are valid.
Business evaluation also takes into account the effectiveness of the enterprise management. This indicator is also investigated and reflected in numbers. A qualified specialist will need to prepare many documents in which they will be reflected in the liability and assets of the studied type of business. Upon completion of the measures, the appraiser provides the customer with the service report on the assessment of the business, which is executed in strict accordance with applicable law. The customer pays for the work of a specialist on the basis of a previously concluded contract for the provision of services.