Business evaluation
Business evaluation is used to estimate the economic value of an enterprise. It can be used to determine the price of an enterprise that a buyer is ready to pay for a business or a seller is ready to get for his/her enterprise. Although it is usually the main goal of business evaluation it has different purposes. Business evaluation is a tool that can be used to take a loan from a bank, to develop a business strategy or to change it according to economic situation.
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 business evaluation, you will be in good hands. Our employees had finished best universities and they possess all essential skills for conducting business 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. Speaking of time it takes up to 5 days to evaluate an enterprise and up to two months to evaluate a huge industrial complex.
Business evaluation is the most difficult and time taking process comparing to other types of evaluation. Business evaluation includes:
-business evaluation of the whole enterprise
-business evaluation of a share in LLC
-business evaluation of a share
-business evaluation of a bond
-business evaluation of a bill
-business evaluation of a bank (however, it has some special features and you can read about if further on our page dedicated to this process).
There are three different approaches that are used in business evaluation. They are:
-the income approach (when value is determined by calculating the discounted cash flow of the business)
-the asset-based approach (when value is determined by net asset value)
-the market approach (when value is determined by comparing the company to other companies that are similar to the subject one).
Our specialists can utilize all these approaches so they can easily determine the fair value of a company.
Business evaluation costs up to 6000 rubles (approximately 200 usd) for a listed company and up to 80000 rubles (approximately 2700 usd) for an industrial complex with turnover up to 300 000 000 rubles (approximately 10 000 000 usd).
In order to start business evaluation we need to receive several documents. They are usually semiannual reports but we might need additional information and in this case we will immediately contact you.
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