Bank evaluation
Bank evaluation is probably the most difficult type of business evaluation due to the specific features of a bank sphere. Generally speaking business evaluation is used to determine profit that a bank can potentially generate. That’s why bank evaluation can be useful not only for investors or buyers but also for current owners who can develop a strategy for several years based on bank evaluation. Bank evaluation is usually conducted during mergers and acquisitions; it can help to forecast efficiency of restructuration. Bank evaluation is essential for getting and independent opinion that will help to understand existing problems and to solve them and to keep a bank competitive.
Since any bank is an enterprise of a financial sector its equity capital has a low share in its assets and also is not liquid. Intangible assets are the most important factor for estimating bank value, especially bank’s reputation that is influenced by wide variety of factors (for instance, whether a bank participate in deposits insurance system or not).
It is highly recommended to contact our specialists before starting bank evaluation because this process is highly individual. A list of documents required for evaluation includes constituent documents, a bank license, activity reports, development plan and some other documents. A list of documents may vary depending on a situation so you should contact our specialist first to speed up process.
USTERRA is officially certified to provide any kind of valuation according to Federal Law ‘About valuation in the Russian Federation’ ¹135 and Federal Standards of Valuation 1-3. However, the law and the standards don’t cover all the aspects of practical valuation though. When the scope of a client request is beyond Russian legislation, in practice the valuation companies apply International Valuation Standards 1-4.
Our reports can be officially used for investors, courts, banks, insurance companies, or in case it’s necessary to take a loan from a bank, to sell a stake within or outside an enterprise, to attract investors, to step into succession, or to develop or change business strategy.
Our specialists have a great experience so it will be wise and safe to trust us to deal with bank evaluation, you will be in good hands. Our employees had finished best universities and they possess all essential skills for conducting bank evaluation. We have both evaluators and business analytics that collect all necessary information to speed up the process so it usually doesn’t take long.
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