SERVICES

Business valuation
Business valuation is the determination of the value of a company as an economic entity aimed at obtaining economic profit.
Business value is understood as the sum of the values of all rights realized on a cash basis through shares, shares in the authorized capital and claims on debts of a legal entity carrying out the relevant business.
Currently, business valuation accounts for approximately 10% of the valuation services market in Azerbaijan.
Our company's employees have accumulated significant experience in the field of valuation of businesses, securities and shares in companies, which allows us to carry out work of any complexity at a high quality level and maintain a stable business reputation in the market.
During the valuation, the value of all assets and liabilities of the company is determined: real estate, machinery and equipment, warehouse reserves, financial investments, accounts receivable, intangible assets, debts. In addition, the efficiency of the company's work, past, current and future income, development prospects in the current market and the competitive environment are assessed, and then the company being valued 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 various nature, from real estate to the business reputation of the enterprise. Therefore, it is necessary to carry out business valuation in terms of all existing valuation approaches: cost, income and comparison 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 value from the cost approach, the value of the enterprise's property (the total of its tangible and intangible assets) is taken as the basis. The cost approach is based on the typical motives and perceptions of a prospective buyer who will not pay more for the enterprise than the value of all its assets.
When valuing a business from the perspective of the income approach, the income that the enterprise can bring in the future is the main factor in the calculation. This approach is based on the expectations of investors, who, mainly, are guided by the forecast amount of the enterprise's future income, determine the current value of the enterprise.
When using the 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), which are carried out. The comparative approach is based on the principle of substitution, according to which the value of the enterprise cannot differ sharply from the value of another enterprise that has equivalent utility for a potential buyer.
All three approaches have their own advantages and disadvantages, superior areas of application and combine a fairly large number of different methods, from which we select the most appropriate methods for a specific object being valued.
The main objectives of business and securities valuation are as follows:
• business acquisition and sale, change in 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;
• improvement of the efficiency of enterprise management;
• exit of the founder or admission of a new founder;
• regulation of inheritance issues;
• entry into IPO;
• restructuring of the enterprise (liquidation, merger, “absorption” or separation of independent enterprises from the holding);
• concession of ownership rights;
• purchase of shares from shareholders;
• resolution of property disputes;
• inclusion of property in the authorized capital;
• revaluation of assets for the transition to IFRS (IFRS), etc.
We have implemented a number of large projects on business valuation in various sectors of the economy, including fuel and energy, shipbuilding, instrument-making, nanotechnologies, insurance and banking, and transport.
Valuation of inventories – raw materials and materials, finished products (goods), work in progress – is carried out independently by each enterprise in accordance with the accounting rules established by it. However, in some cases, such valuation is not sufficient, so it is necessary to involve professional experts for independent valuation. Unlike accounting valuation, qualitative and professional valuation of inventories

The valuation of assets takes into account not only the costs of the enterprise, but also many other factors, such as the market position of the enterprise, the level of competition in the field, the presence of insurance, customer relations, and the image of the company. Therefore, an independent assessment allows you to more objectively reflect the value of the enterprise'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;
• packing and packing materials;
• auxiliary materials; ;
• special clothing and special equipment;

Material resources are valued using three classical approaches - cost, income, and comparative. Depending on the purpose of the assessment, the value of material assets can be calculated as market, investment value, fair (for accounting) and actual value (for insurance purposes).