According to the basic concept of valuation, the value of the property is the present value of the benefits to be received in the future based on its ownership and disposal rights.
There are different types of property, with different methods of evaluating them. In this blog, we will discuss Real Property Valuation, Personal Property Valuation, and Business Valuation.
Real estate is a type of property where a land plot is fixed and various types of natural or artificial improvements are placed on it, such as buildings, structures, biological assets (trees, plants), minerals, etc.
Personal property represents all types of property that do not belong to the category of real estate, is tangible, and can be physically moved for example: cars, machines, office equipment, furniture, consumables, various vehicles, and special equipment.
A business is a type of property, often found as an organization or business entity, that carries on commercial, industrial, or professional activities.
The value of a business is mainly based on an assessment of its commercial potential, and an analysis of assets, liabilities, and cash flows.
Real property appraisal is a complex process, the purpose of which is to determine the market value of the objects to be appraised.
The need to estimate the value of real estate is primarily due to changes in market prices over time, which is influenced by various external and domestic factors. For example: economic growth, changes in bank interest rates, demographic dynamics, legislative changes, inflation, geopolitical situation, technological progress, etc.
Real estate appraisal is necessary for both individuals and legal entities.
Appraisals may be needed not only during sales/purchases, but also during financial reporting, tax audits, property foreclosures, litigation, company mergers, and many other processes.
Accurate property valuation relies on the collection of market information and its systematic analysis.
To determine the value of real estate, the appraiser uses different approaches defined by international valuation standards, namely, the Market Approach, the Income Approach, and the Cost Approach.
It is important to understand that the assessment is carried out for a specific assessment date and is not a one-time event.
As a rule, various environmental factors undergo changes over time, which periodically affect the value of real estate. Therefore, the market value of the object may change over time.
Finally, it is important that the value of the asset is reviewed regularly to ensure that it is reflected in its appropriate value, and if necessary, the said revaluation is carried out.
Personal property appraisal activities are related to the evaluation of the value of movable property and the provision of consulting services.
The market value of movable property is constantly changing, mainly due to scientific/technological progress.
In addition, the economic situation of the country and the change in the tax policy have a significant impact on the prices, which is why periodic revaluation of the property becomes necessary.
You may need an appraisal of real estate when performing almost any type of operation on it.
For example: purchase and sale, loan collateral, property insurance, loss assessment, to reflect/record an asset on the company's balance sheet.
Also, the valuation of movable property is required when the object of civil rights (property, property rights, etc.) is put into circulation and various operations are performed on it.
Movable property is evaluated in the process of various transactions, when it is necessary to determine and change the existing rights.
Similar to the valuation of real estate, the market, income, and cost approach is used for the valuation of movable property, depending on the type of property and the purpose of the valuation.
Knowing the real market value of the movable property will help you get information about the maximum economic benefit of this or that asset, which will ultimately protect you from financial loss caused by insufficient information.
Business valuation refers to the general process of determining the economic value of an entire business or a specific unit of a company.
Business valuation can be used to determine its true value for a variety of purposes.
Business valuation is a complex assessment of all types of company assets, for example, real estate, fixed assets, machinery, equipment, securities, inventories, investments, intangible assets, and liabilities.
In addition, past, current, and future revenues, company efficiency, development perspective, and competitive environment in the market are the subject of separate assessments.
In the evaluation process, this company is also compared with other companies of similar activity. Based on such analysis, the company is assessed as a property complex with profit-making potential.
The value of a business is an objective indicator of the results of its operation. Business valuation is actually a financial, organizational, and technological analysis of the current performance and prospects of an organization or enterprise.
Business valuation is more than determining a specific monetary figure. It is a powerful tool that provides a better representation of the internal processes taking place in the company.
The sooner you use a professional appraisal service, the more time you will have to strategically plan and optimize your business to be more successful in achieving your goals.
There are many approaches and methods of business valuation. We will help you determine the real value of your businesses, depending on the specifics of the various business and the purpose of the valuation, using the appropriate relevant valuation methodology.
The cost of our service is not fixed and also does not depend on the final appraised value of the subject of valuation. It stems from the complexity of the technical task.
The complexity of the technical task determines the type of object to be evaluated, the purpose of the valuation, the date of valuation, in what process the valuation report should be used, and other factors.
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