Any area of Property Valuation, indeed if only one person, an individual entrepreneur, takes part in it, has its own value. It’s customary to add it up not only on the base of the price of the property, but also on the base of a number of other factors that don’t have a specific material expression.
What’s Property valuation and why is it used?
As objects of assessment, generally consider
• equity participation in the authorized capital of the enterprise;
• a share in special finances( if we’re talking about a product cooperative or a set of property that an association has.
Need for business valuation
• if an entrepreneur sells or, again, buys a business, shares, etc. When the valuation is done adeptly and professionally, the value of the asset that the entrepreneur sells or acquires will always be assessed objectively, taking into account all its pitfalls and specifics. It’s known that the value of real estate, as well as portable property, is determined roughly, frequently without involving pundits. In turn, a business is a more complex structure with a large number of features that make it delicate to compare one enterprise with another, indeed if they look analogous at first regard. Of course, the number of similar offers on the request also plays a part there are much further people dealing real estate than those involved in the trade or purchase of a business. Conclusion it’s judicious to involve professional pundits in this process,
• if the business needs to be credited- in other words, take it as collateral for a loan. In this case, we’re talking about the means of an enterprise or association, so valuation conditioning are obligatory;
• if the business or its individual means need to be ensured. The situation resembles the process of lending, but there’s a significant difference. The reviewer determines not the price for the pledged object, but the insurance quantum paid according to the contract;
• in the event of liquidation of an enterprise, its ruin, as well as deals for the accession of a business or its restructuring. An appraisal is carried out in order to determine the price for the means of an association that’s subject to liquidation,etc.;
• in controversies in courts, when the question arises of how much the enterprise or its means bring.