How to evaluate a company

In some cases, an entrepreneur has to evaluate his business. This procedure is required if you are preparing a company for sale, choosing an object to secure a loan, getting rid of some assets due to the threat of bankruptcy, and so on. To evaluate a company, an analysis of its activities and assets will be required.

You will need

• - financial documents of the company;

• - information about the assets of the enterprise.

Instruction manual

1

Perform an analysis of the company as a single property complex. Take into account the tangible assets that are used to conduct business. This includes production and office premises, land, work equipment, raw materials, finished products, industrial equipment.

2

Carry out a separate assessment of the properties owned by the company. This category includes not only buildings and building structures, but also land, perennial plantings and water bodies. As a rule, the assessment takes into account not only the property itself, but also everything that is inextricably linked with it.

3

Consider in the estimates the value of the company's movable property: mechanisms and working machines, computers, vehicles owned by the company on the basis of ownership.

4

Proceed to the valuation of intangible assets of the enterprise. One of them is the business reputation of your company. Legally, this asset is quite difficult to identify, therefore, it is usually evaluated in conjunction with brand names, symbols and other signs that in a certain way affect consumer behavior. When evaluating intangible assets, the location of the enterprise, its life on the market and the constancy of the clientele are taken into account.

5

Analyze the financial component of the assets of the enterprise. Typically, this category includes securities held by the company. Most valued are the shares that are included in the controlling stake. The valuation is based on the current stock price prevailing in the market, taking into account also the forecast of changes in the value of securities.

6

If the company has projects that are implemented through investments, also include them in the assessment. Conduct an analysis of the degree of feasibility and profitability of such projects, guided by a business plan and current indicators.

7

Based on the results of a comprehensive assessment of the company, make a final report, breaking it into separate positions. The report should contain all the main parameters related to the valuation of tangible and intangible assets of the company. Such a document will immediately provide an idea of ​​the real value of the enterprise.