How to determine the real value of a business?

The value of the enterprise includes the liquidation price of the equipment, market or cadastral valuation of real estate, as well as the amount of total income for the current period. Usually a business appraisal procedure is carried out to sell it., pledge, in case of liquidation due to bankruptcy of the enterprise or before the introduction of a new approach in the field of management decisions. This will require special knowledge.. Undoubtedly, to enterprise appraisal turned out to be objective, it is necessary to use the services of independent experts.

In Russian conditions, turnover may not always reflect the real income of the business owner, since it may not take into account, for example, costs, which are individual for each enterprise. The main factor in determining the value of an organization is its net profit.. This is that real money, which the owner can remove from the enterprise. Here is exactly the amount provided, which the owner of the business earns on a monthly basis after paying taxes and salaries to employees. Along with the profit of the enterprise, it can also include the salary of the owner as a general director.

Also business valuation of an enterprise takes into account another important indicator – time, during which the business can bring money. Should be considered, that a business on rented space is cheaper and returns funds much faster. But it is associated with great risk due to the unreliability of the lease.

The value of assets such as machine tools, office equipment and other equipment is installed taking into account the degree of their wear and tear or operating time. Based on the results of a full assessment, an estimated estimate is drawn up, which indicates the value of each of the names of assets.

However,, separately determined the effectiveness of the organization, выполняется valuation of shares companies, its future income and development prospects are predicted. При всем том, the competitive environment in the market is clarified and a comparison of the evaluated company with other similar enterprises is made.

When evaluating an organization using the comparative method, the cost of transactions in the market for the sale of similar objects is taken into account.. In this case, the principle of substitution applies., according to which the price of a particular company for sale cannot differ materially from the value of another company, of equivalent utility to a potential buyer.

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