Business appraising is the process of determination of the current market value of a business or its share in it. The need for the business appraising may arise for different reasons, but sooner or later every company owner may encounter difficulties associated with its implementation. Without reasonable information about the cost, it is very difficult to make the right decisions about the acquisition or alienation of property rights. Thus, the value of a business or a share in it is the information that is crucial for each manager to be effective.
The business appraising covers usually the following activities:
- Appraising of the market value of the business of a company / firm / enterprise / holding;
- Investment appraising of the business / company;
- Appraising of majority and minority shareholdings of the joint-stock companies;
- Determination of the value of shares of the limited liability companies (LLC appraising);
- Appraising of the equity value of the enterprise;
- Appraising of the financial state of the business;
- Appraising of liquidity and solvency of the organization;
- Appraising of the fixed assets / funds of the enterprise.
The need for business appraising may be connected to many situations. The most common goals are:
- Determination of the value of all immovable and movable property of a debtor company for the recognition of bankruptcy;
- Settlement of transaction to buy or sell an existing business;
- Registration of a loan secured by the assets of the enterprise;
- Conclusion of the contracts for property insurance or the entire business;
- Reappraisal of the present value of fixed assets of the enterprise;
- Optimization of taxation of the organization;
- Transfer of enterprise property for rent, determination of the size of the rental rate based on the value of the entire property;
- Preparation of business plans to attract investors;
- Change of the direction of the organization's activity;
- Determination of the value of property in case of disputes in court.
Approaches and business appraising methods
There are different approaches to appraising of the company value, each of which is based on different assumptions about the availability of information, which in turn usually leads to different results.
There are 3 main methods for appraising of the business value / company shares / shareholdings:
The method of adjusted net assets (cost approach)
ROVEX Appraising Company offers its high-quality and professional services to establish the value of the business. Based on the results of the appraising, you will be able to make a correct and balanced decision regarding the future of your business, which brings you income.
Rovex's experts and appraisers have successfully implemented and continue to conduct many projects to establish the value of businesses in various areas of Clients and Partners. The business appraisal reports prepared by Rovex are trusted by Azerbaijani and international lenders and investors, major financial institutions and appraising companies, government agencies and judicial bodies. The cost of services depends on the labor costs of appraisers and experts in the field of value appraising, the volume of services provided and the composition of the project working group, determined based on the business appraising goal, its scope and industry.