How to determine the value of the enterprise

The value of the enterprise is made up of the available assets: the liquidation price of the equipment, the market or cadastral prices of real estate, total income for the current period. Business valuation is required for sale, collateral, liquidation associated with bankruptcy of the enterprise, or for a new approach in the field of management decisions.

You will need

• - an act of independent examination;

• - certificate of cadastral value;

• - an audit report.

Instruction manual

1

The market price of an enterprise can be determined on the basis of the appraised value of independent experts. Contact the agency that has the appropriate state license to conduct an independent assessment of your business.

2

The value of assets: machine tools, office equipment, other equipment is made taking into account the percentage of their wear and tear or their useful life. Based on a full assessment, a settlement estimate is issued indicating the price of each of the items of existing assets.

3

To determine the exact profit figures, you can involve a chief accountant or contact an audit company, which will draw up an estimate based on an audit of the financial activities of the enterprise. Most often, an audit company is invited to carry out calculations if litigation is conducted regarding the bankruptcy of the enterprise and a bankruptcy trustee is appointed. In this case, usually all persons responsible for financial activities are suspended from performing their immediate duties.

4

In bankruptcy, the real estate assets of an enterprise are valued based on the cadastral value, which may differ significantly from the market price. To do this, invite cadastral engineers from the Bureau of Technical Inventory and the Cadastral Chamber for a single land accounting. Based on the inspection, new technical documents are compiled, changes are made to the cadastral passports and the cost of the enterprise is calculated based on the instructions of the current legislation.

5

If the valuation of the enterprise is needed to sell the business, you can focus on the market value of similar companies. Any owner has the right to sell an existing business for the amount that suits both parties, the seller and the buyer. Therefore, the valuation of assets in this case is completely optional.