Assets evaluation – is definition in monetary terms of tangible and intangible assets value as a commodity that can be beneficial and profitable for potential buyers.
During the evaluation the company is considered as a whole structure, which includes all types of property and rights. As a property complex enterprise includes all types of assets for its business: land, buildings, machinery and equipment, raw materials and products, intangible assets, including goodwill, trademark rights, trade name or other exclusive rights.
While determining the assets value the experts and analysts examine various micro- and macroeconomic factors that affect them. The analysis of the macroeconomic indicators can objectively evaluate the investment climate in the country and make a conclusion about the extent and force of environmental changes impact on the company. It should be noted that there is the inverse relationship between the company value and the risks level in the area - the higher the risk, the lower the company value. However, higher income is typical for businesses with high risks.
The main factors that affect the assets value:
• liquidity of business (depending on demand);
• business profitability for owner;
• intangible assets, the enterprise image at the market;
• restrictions for certain business;
• degree of control a new owner will get;
• prospects of business development;
• company's financial position;
• costs of establishing similar ventures;
• degree of competition in a particular domain;
• diversification of assets;
• quality of products, produced by enterprise;
• technology and production costs;
• degree of equipment wear out;
• pricing policy;
• relationships with customers and suppliers;
• staff structure;
• level of management.
An independent evaluation is required for selling the existing businesses, reorganization, selling a part of the enterprise's (business's) property, selling the enterprise's (business's) share, selling shares in the authorized capital, renting the business.
The business cost is determined as a result of negotiation with a particular buyer. Evaluation is the basis for conducting these negotiations. Our company's experts and analysts' experience will allow you to get an objective assessment of the assets value.
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