Valuation of business and securities

SERVICES

Valuation of business and securities

Valuation of business and securities

Business valuation activity is the determination of the value of the company as an economic entity aimed at obtaining economic profit.
The value of the business is understood as the sum of the values of all the rights realized on a paid basis through the rights of demand on shares, shares in the authorized capital and debts of the legal entity carrying out the relevant business.
Currently, approximately 10% of the valuation services market in Azerbaijan is accounted for by business valuation.
Our company's employees have accumulated significant experience in the field of valuation of business, securities and shares in companies, which allows us to perform work of any complexity at a high quality level and maintain a stable business reputation in the market.
During the evaluation, the value of all the company's assets and liabilities: real estate, machinery and equipment, warehouse stocks, financial investments, receivables, intangible assets, debts is determined. In addition, the efficiency of the company's work, past, present and future revenues, development in the current market prospects and the competitive environment are evaluated, and then the evaluated company is compared with similar enterprises. Based on such a complex analysis, the value of the business is determined.
A modern enterprise is a complex structure that combines a large number of assets of different natures, from real estate to the business reputation of the enterprise. Therefore, it is necessary to carry out business valuation in terms of all available valuation approaches: cost, income and comparative approaches. These approaches are not used in isolation, they complement each other. Each approach is based on the use of certain properties that affect the amount of the enterprise's value in one way or another.
Thus, when determining the value in terms of the cost approach, the value of the enterprise's property (the sum of its tangible and intangible assets) is taken as a basis. The cost approach is based on the typical motives and perceptions of an account buyer who will not pay more than the value of all of its assets for a business.
When the business is evaluated from the point of view of the income approach, the income that the enterprise can bring in the future is the main part of the calculation. This approach is based on the expectations of investors, who determine the present value of the enterprise, mainly guided by the forecast amount of future income of the enterprise.
When using a comparative approach to business valuation, the basis for determining the value of the enterprise is the opinion of the market expressed in the prices of similar enterprises or their shares (shares). cannot be significantly different from the value of another enterprise with utility.
All three approaches have their own advantages and disadvantages, superior areas of application and combine quite a large number of different methods, from which we choose the most appropriate methods for a specific evaluated object.
The main objectives of performing business and securities valuation work are as follows:
• buying and selling business, changing the composition of business participants;
• determination of the creditworthiness of the enterprise and the value of collateral during lending;
• attraction of additional investments (issue of securities);
• creation of a new joint venture;
• increasing the efficiency of enterprise management;
• departure of the founder or acceptance of a new founder;
• regulation of inheritance issues;
• access to IPO;
• enterprise restructuring (liquidation, merger, "absorption" or separation of independent enterprises from the holding);
• concession of ownership rights;
• purchase of shares from shareholders;
• settlement of property disputes;
• inclusion of property in the charter capital;
• Revaluation of assets for IFRS (IFRS) transition, etc.
We have completed a number of major business assessment projects in various sectors of the economy, including fuel and energy, shipbuilding, device manufacturing, nanotechnologies, insurance and banking, and transportation.
Inventory of goods and materials - raw materials and materials, finished products (goods), work in progress - is assessed freely in accordance with the accounting rules established by each enterprise. However, in a number of cases, since such an assessment is not enough, it is required to involve professional experts for the purpose of independent assessment. In contrast to the accounting assessment, the qualitative and professional assessment of the stock is only carried out by the enterprise

It includes not only rcs, but also many other factors such as the enterprise's market situation, the level of competition in the field, the presence of insurance, mutual relations with customers, and the image of the company. Therefore, an independent assessment allows to more objectively reflect the value of the company's assets, taking into account all possible risks and the time factor.
Classification of material resources depending on their purpose and role in production:
• raw materials;
• purchased semi-finished products;
• fuel;
• spare parts;
• building materials;
• inventory and household goods;
• screening and screening materials;
• auxiliary materials; ;
• special clothing and special accessories;

Inventory is valued using three classic approaches - cost, revenue and comparative. Depending on the purpose of valuation, the value of tangible assets can be calculated as market value, investment value, fair value (for accounting purposes) and true value (for insurance purposes).