Among the legal acts regulating appraisal activity, relate:

Federal Law of July 29, 1998 No. 135-FZ “On appraisal activities in Russian Federation»;

Valuation standards that are mandatory for use by subjects of valuation activity, approved by Decree of the Government of the Russian Federation of July 6, 2001 No. 519, etc.

Under appraisal activities refers to the activities of the subjects of valuation activities aimed at establishing a market or other value in relation to the objects of valuation.

There are the following types of value of the appraisal object:

1) market value of the subject property– the most probable price at which the given object of appraisal can be alienated for open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction price, that is, when:

One of the parties to the transaction is not obliged to alienate the object of assessment, and the other party is not obliged to accept the performance;

The parties to the transaction are well aware of the subject of the transaction and act in their own interests;

The valuation object is presented on the open market through a public offer typical for similar valuation objects;

The transaction price is a reasonable remuneration for the object of evaluation and there was no coercion to conclude a transaction in relation to the parties to the transaction from either side;

The payment for the appraisal object is expressed in cash.

2)the value of the subject property with a limited market- the value of the object of assessment, the sale of which on the open market is impossible or requires additional costs compared to the costs necessary for the sale of goods freely circulating on the market;

3) cost of replacing the subject property- the amount of costs for the creation of an object similar to the object of assessment, in market prices existing on the date of the assessment, taking into account the depreciation of the object of assessment;

4) cost of reproduction of the object of assessment- the amount of costs in market prices existing at the date of the assessment, for the creation of an object identical to the object of assessment, using identical materials and technologies, taking into account the depreciation of the object of assessment;

5) the value of the appraisal object at current use - the value of the object of assessment, determined on the basis of existing conditions and the purpose of its use;

6) investment value of the object of appraisal- the value of the object of assessment, determined on the basis of its profitability for a particular person for given investment purposes;

7) the value of the object of assessment for tax purposes- the value of the object of assessment, determined for the calculation of the tax base and calculated in accordance with the provisions of regulatory legal acts (including the inventory value);

8) salvage value of the subject property- the cost of the appraised object if the appraised object must be alienated within a period less than the usual exposition period for similar objects;

9) salvage value of the object of appraisal- the value of the object of assessment, equal to market value materials that it includes, taking into account the costs of disposal of the object of assessment;

10) special value of the object of appraisal- the value, for the determination of which the valuation agreement or regulatory legal act stipulates conditions that are not included in the concept of market or other value specified in these valuation standards.

Under objects of evaluation refers to any objects of civil rights involved in civil circulation.

The objects of assessment include:

Separate material objects (things);

The totality of things constituting the property of a person, including property of a certain type (movable or immovable, including enterprises);

Ownership and other real rights to property or certain things from the composition of property;

Rights of claim, obligations (debts);

Works, services, information;

Other objects of civil rights, in respect of which the legislation of the Russian Federation establishes the possibility of their participation in civil circulation.

Allocate two types of evaluation:

1) mandatory assessment;

2) initiative (voluntary) evaluation.

Mandatory evaluation carried out in cases expressly provided for by law. In accordance with Art. 8 of the Federal Law "On Appraisal Activities in the Russian Federation", appraisal of appraisal objects is mandatory if appraisal objects owned in whole or in part by the Russian Federation, constituent entities of the Russian Federation or municipalities are involved in the transaction, including:

When determining the value of appraisal objects owned by the Russian Federation, constituent entities of the Russian Federation or municipalities, for the purpose of their privatization, transfer to trust management or lease;

When using objects of assessment belonging to the Russian Federation, constituent entities of the Russian Federation or municipalities, as a subject of pledge;

When selling or otherwise alienating objects of appraisal owned by the Russian Federation, constituent entities of the Russian Federation or municipalities;

When assigning debt obligations related to the objects of assessment owned by the Russian Federation, constituent entities of the Russian Federation or municipalities;

When transferring objects of assessment belonging to the Russian Federation, constituent entities of the Russian Federation or municipalities, as a contribution to the authorized capital, funds of legal entities, as well as in the event of a dispute over the value of the object of assessment, including:

When nationalizing property;

When mortgage lending to individuals and legal entities in cases of disputes about the value of the subject of mortgage;

When drawing up marriage contracts and dividing the property of divorcing spouses at the request of one of the parties or both parties in the event of a dispute over the value of this property;

In case of redemption or other seizure of property from owners provided for by the legislation of the Russian Federation for state or municipal needs;

When assessing objects of assessment in order to control the correctness of paying taxes in the event of a dispute about the calculation of the taxable base.

Initiative (voluntary) assessment carried out in cases not provided for by law.

21.2. Subjects of valuation activity

To the number subjects of valuation activity include the following individuals.

1. Appraisers - individuals and legal entities entitled to carry out appraisal activities.

The following requirements are imposed on the valuation activity of individuals:

State registration as an individual entrepreneur;

Possession of a certificate of education confirming receipt professional knowledge in the field of appraisal activities in accordance with the professional educational programs of higher vocational education, additional vocational education or professional retraining programs for employees.

The following requirements are imposed on the valuation activity of legal entities:

Compliance with the legislation of the Russian Federation on valuation activities;

State registration as legal entity;

The presence in the staff of a legal entity of at least one employee for whom this legal entity is the main place of work and who has a document on education confirming the acquisition of professional knowledge in the field of valuation activities in accordance with the professional educational programs of higher professional education, additional professional education or professional retraining programs for employees.

Appraisers are required to improve their qualifications at least once every three years, as well as to conclude a civil liability insurance contract in case of damage to third parties in connection with the appraiser's activities (Article 24 of the Federal Law "On Appraisal Activities in the Russian Federation").

2. Consumers of appraisers' services (customers) - any individuals and legal entities that have entered into an agreement on the provision of services for the appraisal of a particular object of appraisal.

3. The state body that regulates valuation activities (Ministry economic development and trade of the Russian Federation).

The functions of the authorized bodies in this area are:

Control over the implementation of valuation activities;

Regulation of valuation activities;

Interaction with public authorities on issues of valuation activities and coordination of their activities;

Coordination of draft valuation standards;

Coordination of the list of requirements for educational institutions, carrying out professional training of appraisers in accordance with the legislation of the Russian Federation.

4. Self-regulating organizations of appraisers. For the purpose of self-regulation of valuation activities, appraisers have the right to unite in associations, unions, and other non-profit organizations.

Self-regulatory organizations of appraisers can perform the following functions:

Protect the interests of appraisers;

Contribute to the improvement of the level of professional training of appraisers;

Contribute to the development of educational programs on vocational training appraisers;

Develop your own assessment standards;

Develop and maintain their own quality control systems for the implementation of valuation activities.

21.3. Legal status of the appraiser

The legal status of an appraiser is determined by the Federal Law "On Appraisal Activities".

The appraiser has the right:

1) apply independently the methods for assessing the object of assessment in accordance with the assessment standards;

2) require from the customer, when conducting a mandatory assessment of the object of assessment, to ensure access in full to the documentation necessary for the implementation of this assessment;

3) receive clarifications and additional information necessary for the implementation of this assessment;

4) request in writing or orally from third parties the information necessary for the assessment of the object of assessment, with the exception of information that is a state or commercial secret; in the event that the refusal to provide the specified information significantly affects the reliability of the appraisal of the appraisal object, the appraiser indicates this in the report;

5) involve, as necessary, on a contractual basis, other appraisers or other specialists to participate in the assessment of the object of assessment;

6) refuse to evaluate the object of assessment in cases where the customer violated the terms of the contract, did not provide necessary information about the appraisal object or did not provide the working conditions corresponding to the contract;

7) demand reimbursement of expenses associated with the appraisal of the appraisal object, and monetary remuneration for the appraisal of the appraisal object as determined by a court, arbitration court or arbitration court (Article 14 of the Federal Law "On Appraisal Activities in the Russian Federation").

The appraiser is obliged:

1) comply with the requirements of the legislation on appraisal activities when carrying out valuation activities;

2) inform the customer about the impossibility of his participation in the appraisal of the appraisal object due to the occurrence of circumstances that prevent an objective appraisal of the appraisal object;

3) ensure the safety of documents received from the customer and third parties during the assessment of the object of assessment;

4) provide the customer with information on the requirements of the legislation of the Russian Federation on valuation activities, on the charter and on the code of ethics of the relevant self-regulatory organization(professional public association of appraisers or non-profit organization appraisers) whose membership is referred to by the appraiser in his report;

5) provide, at the request of the customer, a license to carry out valuation activities, an insurance policy and a document on education confirming the acquisition of professional knowledge in the field of valuation activities;

6) not to disclose confidential information received from the customer during the appraisal of the object of appraisal, except as otherwise provided by the legislation of the Russian Federation;

7) keep copies of the prepared reports for three years;

8) in cases stipulated by the legislation of the Russian Federation, provide copies of stored reports or information from them to law enforcement, judicial, other authorized state bodies or local governments at their legal request (Article 14 of the Federal Law "On Appraisal Activities").

The appraisal of the object of appraisal cannot be carried out by the appraiser if he is the founder, owner, shareholder or official legal entity or customer or individual, having a property interest in the object of assessment, or is in close relationship or property with the indicated persons.

Valuation of the object of assessment is not allowed if:

1) in relation to the object of appraisal, the appraiser has property or liability rights outside the contract;

2) the appraiser is a founder, owner, shareholder, creditor, insurer of a legal entity or a legal entity is a founder, shareholder, creditor, insurer of an appraisal firm.

Intervention of the customer or other interested parties in the activities of the appraiser is not allowed if this may adversely affect the reliability of the result of the appraisal of the appraisal object, including limiting the range of issues to be clarified or determined during the appraisal of the appraisal object.

The amount of payment to the appraiser for the appraisal of the appraisal object cannot depend on the final value of the appraisal object value (Article 16 of the Federal Law “On Appraisal Activities in the Russian Federation”).

A prerequisite for protecting the rights of consumers of appraisers' services is civil liability insurance for appraisers. An insured event is the infliction of losses to third parties in connection with the implementation of the activities of the appraiser, established by a valid decision of the court, arbitration court or arbitration court.

The appraiser is not entitled to engage in appraisal activities without concluding an insurance contract. Having an insurance policy is prerequisite to conclude an agreement on the assessment of the object of assessment.

Appraisers' civil liability insurance can be carried out in the form of an insurance contract for a specific type of appraisal activity (depending on the object of appraisal) or under a specific appraisal contract for the appraisal object (Article 17 of the Federal Law "On Appraisal Activities in the Russian Federation").

21.4. Assessment procedure

The assessment process includes a number of stages.

1. Conclusion of an appraisal agreement with the customer. The appraisal of the object of appraisal can be carried out by the appraiser only if the requirement for the independence of the appraiser, provided for by the legislation of the Russian Federation on appraisal activity, is observed. If it does not meet the specified requirement, the appraiser is obliged to inform the customer about this and refuse to conclude an appraisal agreement.

The contract between the appraiser and the customer is concluded in writing and does not require notarization.

The contract must contain:

Grounds for concluding a contract;

Type of object of assessment;

Type of determined value (values) of the appraisal object;

Monetary remuneration for the assessment of the object of assessment;

Information about appraiser's civil liability insurance.

The agreement must include information on whether the appraiser has a license to carry out valuation activities, indicating the serial number and date of issue of this license, the authority that issued it, and the period for which this license was issued.

The appraisal contract for both a single appraisal object and a number of appraisal objects must contain an exact indication of this appraisal object (objects of appraisal), as well as its (their) description.

In relation to the appraisal of appraisal objects owned by the Russian Federation, constituent entities of the Russian Federation or municipalities, the contract is concluded by the appraiser with a person authorized by the owner to make a transaction with appraisal objects, unless otherwise provided by the legislation of the Russian Federation.

When concluding an appraisal agreement, the appraiser is obliged to provide the customer with information about the requirements of the legislation of the Russian Federation on appraisal activities, including the procedure for licensing appraisal activities, the appraiser's obligations, the requirements for the appraisal agreement and appraisal report, as well as appraisal standards. The fact of providing such information is recorded in the valuation agreement.

2. Establishment of quantitative and qualitative characteristics of the object of assessment. In this case, the appraiser collects and processes:

Title documents, information about the encumbrance of the object of assessment with the rights of other persons;

Accounting and reporting data related to the object of assessment;

Information about the technical and operational characteristics of the object of assessment;

Information necessary to establish the quantitative and qualitative characteristics of the appraisal object in order to determine its value, as well as other information related to the appraisal object;

3. Analysis of the market to which the object of assessment belongs. The appraiser determines and analyzes the market to which the appraisal object belongs, its history, current market conditions and trends, as well as analogues of the appraisal object and justifies their choice;

4. Choice of valuation method(s) within each of the valuation approaches and implementation of necessary calculations. In doing so, the appraiser uses the following valuation approaches:

Cost approach - a set of methods for assessing the value of the object of assessment, based on the determination of the costs necessary to restore or replace the object of assessment, taking into account its depreciation;

Comparative approach - a set of methods for assessing the value of the object of assessment, based on a comparison of the object of assessment with similar objects in respect of which there is information on the prices of transactions with them;

Income approach - a set of methods for assessing the value of the object of assessment, based on the determination of the expected income from the object of assessment.

At this stage, the appraiser also necessary calculations of one or another type of value of the appraised object, taking into account the obtained quantitative and qualitative characteristics of the appraised object, the results of the analysis of the market to which the appraised object belongs, as well as circumstances that reduce the likelihood of receiving income from the appraised object in the future (risks), and other information.

5. Generalization of results obtained within each of the assessment approaches, and determination of the final value of the object of assessment.

The final value of the object of appraisal must be expressed in rubles as a single value, unless otherwise provided in the appraisal agreement.

The final value of the value of the appraisal object indicated in the appraisal report drawn up in the manner and on the basis of the requirements established by the Federal Law "On appraisal activities in the Russian Federation", appraisal standards and regulations on appraisal activities of the authorized body for monitoring appraisal activities in the Russian Federation Federation, may be recognized as recommended for the purposes of making a transaction with the subject of assessment, if no more than 6 months have passed from the date of preparation of the valuation report to the date of the transaction with the subject of appraisal or the date of submission of the public offer.

6. Compilation and transfer to the customer of the assessment report.

The report must not be ambiguous or misleading. The report must indicate the date of the appraisal of the appraisal, the appraisal standards used, the goals and objectives of appraisal of the appraisal, as well as other information that is necessary for a complete and unambiguous interpretation of the results of the appraisal of the appraisal reflected in the report.

If during the appraisal of the appraisal object, not the market value is determined, but other types of value, the report must indicate the criteria for establishing the appraisal of the appraisal object and the reasons for the deviation from the possibility of determining the market value of the appraisal object.

The report must include:

Compilation date and serial number report;

The basis for the appraiser to evaluate the object of appraisal;

The location of the appraiser and information about the license issued to him to carry out appraisal activities for this species property;

Exact description of the appraisal object, and in relation to the appraisal object owned by a legal entity - details of the legal entity and the book value of this appraisal object;

Appraisal standards for determining the appropriate type of value of the appraisal object, the rationale for their use in the appraisal of this appraisal object, the list of data used in the appraisal of the appraisal object, indicating the sources of their receipt, as well as the assumptions made during the appraisal of the appraisal object;

The sequence of determining the value of the appraisal object and its final value, as well as the limitations and limits of the application of the result obtained;

Date of determining the value of the appraisal object;

List of documents used by the appraiser and establishing the quantitative and qualitative characteristics of the appraisal object.

The report may also contain other information that, in the opinion of the appraiser, is essential for the completeness of the reflection of the method used by him to calculate the value of a particular object of appraisal.

The report must be page numbered, stitched, sealed, and signed by an appraiser - an individual entrepreneur or an employee of a legal entity.

test questions

1. Describe the valuation activity as one of the types of entrepreneurial activity.

2. In what cases is a mandatory assessment carried out?

3. What is legal status appraiser?

4. List the powers of the state body that carries out state regulation of valuation activities.

5. Describe the procedure for conducting the assessment.

Topic 2. Characteristics of personnel assessment methods. …………………eleven

Topic 3. Typical errors in personnel assessment…………...…………..26

Topic 4. Assessment center as a method of personnel assessment ... ……………38

Topic 5. 360 degree assessment method…………………………………….47

Topic 6. Certification. Goals, stages, procedure……………..54

Topic 7. business valuation personnel. Assessment of the potential and personal contribution of employees……………………………..……………………………….....69

Topic 8. Evaluation of the leaders of the organization…………..………………..76

Literature ………………………………………………………………..83

Applications………………………………………………………………..87

INTRODUCTION

An effective organization of personnel management implies knowledge of the dynamics of changes in personnel potential, timely adjustment of personnel development plans, systems of rotation and incentives for personnel. The main source of information for this is the regular assessment of personnel.

A comprehensive and objective assessment of specialists and managers is recognized as an active and effective management tool that allows you to solve production and social problems in enterprises, to achieve success in business based on the activation and rational use of the most important type of resource - human resources.

Evaluation is an organic part of all personnel work, it helps to achieve those goals in the field of personnel development that meet the company's strategy for the future. It accompanies all stages of the life and professional path of any person, enters, explicitly or implicitly, into his daily work activity.

Topic 1. The concept of personnel assessment. Tasks, functions, personnel assessment system

1.1 The concept, tasks and functions of personnel assessment

1.2 Levels of staff appraisal

1.3 Personnel evaluation system

Personnel assessment is a set of measures (a system for assessing employees) aimed at determining the compliance of an employee with a vacant or occupied workplace (position).

Personnel assessment is inextricably linked with the concept of "management". For effective management, it is important to properly evaluate personnel and make the most of the results of a comprehensive personnel assessment for the development of the organization's personnel.

Performance Management is an activity focused on the achievement of clearly defined, measurable and interrelated goals, related to the effectiveness of achieving these goals. Performance management helps to unlock the potential of the staff and, as a result, improve the efficiency of the team and the management system as a whole. Management by setting goals (Management by Objectives) is at the same time a method of managing and evaluating personnel, in which:

the leader and the subordinate jointly determine the main goals for the subordinate;

after a specified period, the manager evaluates the degree of implementation of the goals.

Personnel assessment is an integral part of the organization's integrated personnel management. The main objectives of the assessment are:

evaluation of candidates upon employment;

assessment of the compliance of employees with the requirements of the workplace, position;

assessment of the effectiveness of the work of employees to establish the level of payment and forms of incentives;

assessment of leadership and professional qualities employees for the formation of a personnel reserve and planning professional and qualification advancement, career;

assessment of professional knowledge and skills of employees to organize a system of in-company training;

assessment of the qualities of employees if it is necessary to change the type of activity, profession in connection with the state of health, reorientation of the enterprise and the release of personnel.

The choice of methods and frequency (frequency) of personnel assessment depends not only on the specific task, but also on the category of employees and the specifics of their work.

The initial data for evaluation are: models of personnel workplaces; regulation on certification of personnel; personnel rating methodology; enterprise philosophy; internal labor regulations; staffing; personal files of employees; personnel orders; sociological questionnaires; psychological tests.

Evaluation of the organization's personnel performs various functions. These include:

constructive(assessment is the basis for making personnel decisions),

coordination(assessment acts as information support for operational management in order to improve the efficiency of the organization),

control(the content of the assessment varies depending on the goals set),

analytical(assessment serves as the information base for the analysis),

communication(the evaluation procedure is a way of conveying to the employee the recognition of the results of his activities, serves as a signal for correcting behavior, provides feedback),

motivational(assessment itself acts as a means of motivation, since it shows the direction of desirable - undesirable forms of manifestation of labor behavior or attitude to work).

All personnel assessment functions are closely interrelated and provide a systematic approach to management.

Evaluation functions are not limited to information only. Periodic personnel assessment increases the efficiency of the organization, as it ensures prompt reverse connection with the performance of the employee and provides the following benefits:

Firstly, it helps employees to correct their perception of their own business qualities and the quality of their performance. official duties encourages more efficient work.

Secondly, it serves as an objective basis for employee incentive systems, helps to solve the problems of career planning, personnel reshuffles and, therefore, has a positive effect on employee motivation.

Thirdly, it allows you to determine the degree of staffing of departments with qualified specialists, provides material for the development of documentation used in personnel selection procedures.

Fourthly, it makes it possible to identify shortcomings in the qualification development of each employee and staff as a whole, therefore, it facilitates the planning of personnel development programs.

These advantages of using a personnel assessment system are realized under the condition of its qualified implementation, objectivity and universality of the criteria submitted for assessment, simplicity and openness of the system itself, active participation in the assessment of employees, rationality of the assessment frequency. The personnel assessment procedure should be objective, reliable, reliable and accessible in terms of results, comprehensive, be predictable, fit into the overall system of personnel work and not violate the normal operating mode of the organization.

In the real conditions that develop in enterprises, there is a wide variety of assessment situations, which is due to the objectives of the assessment and the composition of the tasks to be solved. According to the intended purpose, assessments can be predictive or operational in nature.

The predictive approach allows you to build a hypothesis model about the future activities of the candidate being evaluated. An operational approach to evaluation provides for obtaining evaluation data related to current practical activities for the previous period (month, quarter), monitoring the results achieved during this period, which are necessary for making decisions on transfers and remuneration in the short term.

The main objectives of the assessment for the employee are the following:

encouraging correct behavior and correcting incorrect;

providing workers with information on how well they are performing;

providing clear grounds for further career decisions regarding the employee.

The main objectives of personnel assessment for the organization are the following:

changes in the amount of remuneration, compensation;

counseling, career development;

training and organizational development;

promotion;

HR planning;

reduction, reduction;

validation of the sampling technique.

Personnel assessment contributes to the implementation of the objectives of the organization's personnel policy in the following aspects:

diagnostics of the level of professional readiness for comparison with the requirements of the workplace or comparison of candidates applying for one place;

certification, performance evaluation to accelerate the processes of job growth and rotation;

study of professional orientation to accelerate the processes of adaptation and entry into the working rhythm;

the use of assessment as a means of increasing the level of competence of managerial personnel;

individual diagnostics for the purpose of career guidance;

collection of information in order to form a bank of potential job candidates.

use of assessment methods to form personnel reserve and staff rotation within the organization.

There are American and European personnel assessment procedures:

American evaluation procedure. The assessment is carried out to determine the suitability of the employee for his workplace, to determine those changes in work that have occurred since the last assessment. The results of the assessment affect pay and status in the company.

In the European assessment procedure, the emphasis is on obtaining feedback from the employee for career development planning, individual development, training planning. The procedure itself should be as informal as possible, open, not leading to serious changes in the financial and career situation of the employee.

It is not possible to combine these two goals in one procedure, therefore, it is first necessary to determine exactly what is most important for the company at the moment.

1.2. Speaking about the assessment carried out in any organization as a whole, two types of assessment should be distinguished: assessment of labor, personnel and personnel assessment itself.

Labor evaluation aims to compare the actual content, quality, volume and intensity of personnel labor with the planned ones. The planned characteristics of the work of personnel, as a rule, are presented in plans and programs, technological maps of the enterprise. Evaluation of labor makes it possible to assess the quantity, quality and intensity of labor.

Performance appraisal is a formal procedure for evaluating an employee's work by collecting information about the performance of assigned tasks and consists of a system of criteria that evaluate the employee's attitude to work, his behavior and performance, used to assess how well the employee is doing the job. The main rules in the process of performing work are:

performance is assessed on the basis of results against specific targets set at the start of the annual review period;

the employee should receive special feedback regarding the verification of the results he has achieved, in which he met or exceeded expectations;

the performance appraisal document should reflect the views of the manager and employee regarding future careers and potential opportunities;

employees should actively participate in the performance evaluation process; the assessment document should include comments from workers on their work and on the inspection itself;

supervisors (direct and functional) of the person being audited should be given the opportunity to contribute to the assessment process, including reviewing the proposed assessment, making relevant observations, and signing assessment documents to ensure the integrity and impartiality of the assessment;

lower-level managers should receive periodic and comprehensive training and guidance on the methods and process of performance evaluation;

the performance of immediate supervisors should be judged by the quality of the performance ratings they give to their employees;

employees receive performance appraisal at least once a year.

The purpose of personnel assessment is to study the degree of preparedness of an employee to perform exactly the type of activity in which he is engaged, as well as to identify the level of his potential for the purpose of growth prospects (rotation), as well as the development of personnel measures necessary to achieve the goals of personnel policy. That is, personnel assessment is a procedure carried out to determine the compliance of an employee with a vacant or occupied workplace, position. It includes an assessment of the employee's potential, his individual contribution and certification.

An analysis of management practice shows that in most cases corporations simultaneously use different types of employee performance assessment.

Depending on the purpose of the assessment, several types of it are distinguished:

when determining qualifications (the level of qualification of an employee is determined - knowledge, skills, experience - and compared with the standard - position requirements),

when determining the personal potential of an employee and predicting his career (the basic qualities of an employee as a person are determined and the resulting psychological portrait is compared with the standard; the motivational sphere of the employee is determined; the information obtained allows you to determine how much the employee corresponds to the corporate culture of the company, socio-psychological climate),

when identifying the real performance of an employee at his particular workplace (the quality of performance is assessed) official duties: implementation of work plans (terms, quality), achievement of goals.

All these types of evaluation require different technologies and the degree of formalization of the procedure. At the same time, the effectiveness of any type of assessment depends largely on how they are all interconnected in a single process of regular assessment.

The following levels of the assessment process can be distinguished (Scheme 1):

qualification tests;

capacity assessment;

What is meant by business valuation?

• Assessment of an enterprise (business) - a set of measures,

• aimed at establishing the value of the business

• Estimation of the full value of the business (invested capital) (EV)

• Equity assessment (CV):

• Promotion/Package of shares joint-stock company
• Share / share in the authorized capital of enterprises of other organizational and legal forms
• Derivative securities (options)

• Valuation of property complexes




Evaluation Cases

• Mandatory

• Transactions with property partially or wholly owned by the state

• Disputes about the value of property

• Approval of major transactions (involvement of an appraiser on the initiative board of directors)

• Additional issue of shares

• Valuation of property in connection with the transfer of property as a contribution to the authorized capital

• External management, bankruptcy proceedings




• Volume 1. Appraiser's Report

• Assignment for evaluation

• Introduction

• General characteristics of the enterprise

• Industry Analysis

• Analysis of the enterprise's activity

• Assessment methodology

• Rationale for Approaches and Assessment Methods Used

• Calculation of the cost of equity capital of an enterprise

• Cost approach
• Comparative approach
• income approach
• Generalization of the obtained results

• Calculation of the market value of a block of shares

• Glossary of terms used

• List of documents provided by the Customer

• List of used materials

• Applications

• Volume 2. Valuation of fixed assets

• Volume 3. Copies of original documents




Approaches and methods of evaluation




Characteristics of approaches

• Cost approach - a general method for determining the value of a company's business, which uses one or more methods based on the analysis of data on the value of the company's assets and liabilities.

• Comparative approach– a general method for determining the value of a company and/or its equity, which uses one or more methods based on the analysis of information on the value of similar businesses (companies-analogues).

• income approach- a general method for determining the value of a company and / or its equity, which uses methods based on the calculation of the present value of expected future income.




Comparative analysis of approaches




Cost approach

• Cost approach is based on the analysis of data on the value of the company's assets and liabilities and considers the value of the enterprise in terms of costs incurred.

• Formula:

• Adjusted Asset Value

• – Adjusted value of liabilities

• = Enterprise value

• Calculation algorithm:




Initial information in the cost approach

• Balance sheet (Form No. 1) as of the valuation date

• Transcriptions of balance sheet lines received from accounting

• Characteristics of assets and liabilities

• For intangible assets: date of creation, book value, information on the costs of creation, etc.;
• For real estate: year of construction, book value and accumulated depreciation, location, design characteristics, current use, etc.;
• For movable property: date of entry, book value and accumulated depreciation, model and brand, manufacturer, current use, etc.;
• For financial investments: date of appearance in accounting, date of repayment, conditions of investments and their amounts, information about the investment object, etc.;
• For inventories: acquisition date, market price data, illiquid inventory data, and finished products and etc.;
• For receivables: the date of occurrence and probable repayment, data on the borrower, his financial condition, data on overdue debts, etc.;
• For accounts payable: the date of occurrence in accounting and probable repayment, information on overdue debts, fines and penalties, etc.



Comparison of cost approach methods

• Asset Accumulation Method

• For an operating enterprise

• The value of assets is determined




Asset Accumulation Method

• Liabilities

• Long-term liabilities on loans and credits

• Other long-term liabilities including deferred tax assets

• Short-term liabilities on loans and credits

• Accounts payable

• Indebtedness to participants for the payment of income

• Reserves for future expenses

• Other current liabilities

• Total liabilities




Options for using the cost approach




Comparative approach

• Comparative approach is the determination of the value of the company based on the analysis of information on the value of similar businesses.

• Comparative approach methods:

• Method of companies of analogues , is based on the use of share prices formed by the market and consists in comparing the performance of the company being valued with the performance or ratios of similar enterprises.

• Method of retrospective transactions is to calculate the market value based on the results of transactions made in the past with shares of the company being valued.

• Industry coefficient method is based on the use of average ratios between the price and certain financial parameters. These ratios are obtained by statistical observation of the sale price of the enterprise and its most important production and economic characteristics.




Method of companies of analogues

• Calculation algorithm:

• Selection of peer companies

• Determining the price (capitalization) of peer companies

• Calculation of multipliers

• Calculation of average multipliers

• Determination of the market value of the enterprise being valued based on the calculated multipliers.




Method of companies of analogues

• A company is an analogue if:

• Operates in the same industry as the subject;

• Comparable in size to the estimated;

• Has a similar product range;

• The financial performance of the analogue is similar to the performance of the appraised.




Background information in the comparative approach

• Data on transactions in the stock market:

• RTS, MICEX
• Foreign exchanges using Bloomberg Professional®

• M&A market data (excluding transactions in the stock market)

• Database (FBK)
• Foreign Deals, Bloomberg Professional®

• Data on the activities of analogues:

• Internet sites of companies, quarterly reports of issuers, etc.

• Accounting data of analogues

• Company websites



Multipliers Price multiplier is a ratio showing the ratio between the price of an enterprise or share and a financial or other base. Types of multipliers:

• Share Price/Revenue

• Share price/Net profit per share

• Share Price / Book Value of Assets

• Share Price/Dividends

• Share Price/Earnings

• Share Price/Net Cash Flow

• Share price/Book value of machinery and equipment

• Share Price/Stock




income approach

• income approach is a calculation of the value of an enterprise based on the projected future earnings of that enterprise.

• Income approach methods




income approach

• Alternative methods:

• Options Method

• The real options method is an improvement on the discounted cash flow method. This method allows you to take into account future opportunities due to today's investments.

• decision tree

• A decision tree is a diagram that describes the decision making process and the consequences of choosing each of the possible alternatives. It simultaneously presents the probabilities of risk and the costs or benefits of choosing each logical sequence of events and future decisions.




Initial information in the income approach

• Accounting data for several years preceding the assessment date (form No. 1, form No. 2);

• Information on production volumes in physical terms, product sales prices for several years preceding the assessment date;

• Cost estimates for several years prior to the valuation date;

• Information about investments and their results for the last few years;

• Data on market share, competitors;

• Data on competitors' prices, average market prices for products, average fin. indicators, incl. SOK level;

• Business plans of the enterprise for the near future, incl. investment plans;

• Forecasts of exchange rates (www.cbr.ru), inflation (www.rbc.ru, etc.);

• Data on the country's average rates of deposits, loans, data on retrospective exchange rates (www.cbr.ru), price indices, incl. by industry.




Forecasting methods

• Method of expert assessments

• Scenario Method

• Trend extrapolation method

• Regression analysis method

• Method of economic and mathematical modeling




Capitalization method

• , where

• , where

• r - discount rate

• g- long-term growth rate of the company's income




DDP method

• where:

• V- company value

• – cash flow of the i-th interval;

• r - discount rate

• n– number of forecast intervals;

• g




DDP method

• where:

• V- company value

• – cash flow in the post-forecast period;

• r - discount rate

• g– long-term growth rate of cash flow in the post-forecast period.




DDP method

• The main stages of applying the method:




Cash flow calculation

• Cash flow to equity:

• + Cash flow from financing activities

• = Cash flow to equity

• Cash flow on invested capital:

• Cash flow from production activities

• + Cash flow from investing activities

• + Debt service expense accounted for in DP from operating activities as operating costs

• = Cash flow per invested capital




Calculation of cash flow from production activities

• Cash flow from production activities:

• Net profit after taxes

• + Depreciation deductions

• +/- Decrease (increase) in own working capital

• = Cash flow from manufacturing activities




Net Profit Forecasting

• Calculation algorithm:

• Revenue

• - Production cost

• - Selling expenses

• - Administrative expenses

• = Revenue from sales

• + Operating income

• - Operating expenses

• + Non-operating income

• - Non-operating expenses

• = Profit before tax

• - income tax

• = Net profit




Ways to predict depreciation

• Depreciation forecast based on historical data

• Per-object forecast based on average depreciation rates

• Own forecast of the enterprise according to business plans




Calculation of investments in own working capital

• Calculation methods:

• Element forecast;

• Analysis of the retrospective relationships of own working capital and sales proceeds or all current assets of the enterprise being valued and the use of the average value for the retrospective period as a standard when forecasting the SOC;

• Analysis of sectoral ratios of own working capital to revenue or total working capital and using the average value as a standard when forecasting SOC.




Discount rate

• Discount rate - is the expected rate of return on invested capital in comparable risk investees or, in other words, the expected rate of return on available investment alternatives with comparable risk levels at the valuation date.

• Methods for determining the discount rate:

• For invested capital:

• Weighted average cost of capital (WACC) model

• For equity:

• Capital asset pricing method (CAPM)
• Arbitrage Pricing Theory (ART)



Weighted average cost of capital model

• rIC = wE*rE + wD*rD*(1 – T), where

• rIC – cost of invested capital according to the WACC formula;

• wE – the share of equity capital in the capital structure of the company;

• rE – cost of own capital;

• wD – share of interest-bearing borrowed capital in the company's capital structure;

• rd - the cost of borrowed capital;

• T - Income tax rate.




Cumulative construction method

• Formula:

• Rate of return on risk-free securities

• + Risk premium for investing in the company being valued

• = Discount rate




Risk free rate of return

• A financial instrument accepted as a risk-free rate of return must meet the following conditions:

• The yield on it is determined and known in advance;

• The probability of losing funds as a result of investments in the asset in question is minimal;

• The duration of the circulation period of the financial instrument coincides with or is close to the "lifetime" of the enterprise being valued.

• Possible options for risk-free rates:

• Deposits of Sberbank of the Russian Federation and other reliable Russian banks;

• Western financial instruments (government bonds of developed countries, LIBOR);

• Interest rate on Russian interbank loans (MIBID, MIBOR, MIACR);

• Refinancing rate of the Central Bank of the Russian Federation;

• Government bonds of the Russian Federation.




Capital Asset Pricing Model

• Formula: r = rf + β(rm - rf) + s1 + s2 + s3, where

• r- the rate of return required by the investor,

• rf- risk free rate of return

• β - beta, systematic risk of stocks,

• (rm - rf) - market risk premium

• S1- country risk premium,

• S2- company size premium

• S3- company risk premium

• Dynamics of the RTS index for the period 09/01/1995 - 09/30/2005




Beta coefficient

• beta coefficient relates the return of a stock to the return of the corresponding market index and provides two kinds of information:

• A positive sign indicates that the dynamics of this security generally coincides in its direction with the dynamics of the market, a negative one - vice versa;

• A modulo value greater than one means that the risk and expected return on this security are higher than the market average, less than one - vice versa.

• , where

• - profitability of the RTSI or RBCC index;

• - profitability of a particular security;

• - variance of the index.

• Beta dynamics for the most liquid stocks (according to www.rbc.ru)




Arbitrage pricing theory

• r = rf+ β1 k 1 + β2 k 2 + … + β nkn,

• r- the rate of return required by the investor;

• rf- risk-free rate of return;

• β1, …, β n- the sensitivity of the asset to each

• risk factor in comparison with the average sensitivity of the market to this factor;

• k 1, …, kn is the risk premium associated with the factor k for the average asset.




• Calculation algorithm:

• In the general case, in the final agreement, each of the results obtained using different approaches is given its own weight.

• Factors affecting weight:

• The nature of the business and its assets;

• The purpose of the valuation and the definition of value used;

• The quantity and quality of data supporting each method applied;

• The degree of confidence of the appraiser in the results of calculations, due to the validity and legitimacy of the application of each method.




Consolidation of evaluation results

• The main reasons for reducing the weight of the cost approach in the final approval:

• Insufficiency or incompleteness of information for calculating the market value of significant assets and liabilities;

• Forecasted significant growth (reduction) of the enterprise (or increase (decrease) in production volumes) with rates significantly different from the industry average forecasts;

• Significant amount of unused assets;

• Lack of information for calculating functional and external depreciation when assessing fixed assets;

• The inability to evaluate all intangible assets, especially if the existing customer base, long-term contracts, etc. are of particular importance for the enterprise.




Consolidation of evaluation results

• The main reasons for reducing the weight of the comparative approach in the final agreement:

• Few analogues (less than 5);

• Limited or doubtful information about analogues;

• Significant time spread of transactions (which requires additional adjustments);

• Use of information on privatization transactions (with state-owned stakes);

• The presence of atypical (non-market) factors that significantly affect the activity or structure of the assets of the assessed enterprise (if their influence could not be eliminated (corrected) when calculating using the comparative approach);

• Significant differences between analogues, both among themselves and in comparison with the assessed enterprise (both in physical terms and in terms of financial indicators, including financial position, location, etc.);

• Significant spread of cost values ​​for different multipliers;

• Rejection of any commonly used multipliers;

• Projected significant growth (decrease) of the enterprise (or increase (decrease) in production volumes) with rates that differ significantly from the industry average forecasts.




Consolidation of evaluation results

• The main reasons for lowering the weight of the income approach in final approval are:

• Instability of financial and economic activity in the retrospective period;

• A short period of conducting activities for which the DCF is being built;

• The need to make significant investments, incl. significant raising of funds for the projected core business;

• Significant dependence on one supplier or buyer;

• Lack of assets for independent business activities;

• Unclear prospects for the further activity of the enterprise (including in the post-forecast period).




Final Amendments

• Amendment types:

• Amendment for the control nature of the package

• Discount for low liquidity for closed companies

• Portfolio Structure Discount




Amendment for control

• Factors affecting the level of control:

• The rights of shareholders defined by laws, which vary depending on the size of the block of shares at their disposal;

• The procedure for voting and decision-making in a given company (for example, cumulative voting, in contrast to non-cumulative voting, allows minority shareholders to take part in management);

• The effect of the distribution of ownership (for example, ceteris paribus, the higher the degree of concentration of equity capital, the higher the degree of control);

• Other factors.

• Methods for determining the adjustment for control:

• 1. Expertly . Based on the subjective opinion of the appraiser or analysis of the share capital structure.

• 2. Regulatory . On the basis of Decree of the Government of the Russian Federation of May 31, 2002 No. 369. "On approval of the rules for determining the standard price of state and municipal property subject to privatization."

• 3. Statistically . This method involves the study and generalization of information about real transactions with shares of companies for a certain period.




Amendment for control

• Average control ratios and premiums grouped by shareholding size (FBK calculations)




Portfolio Structure Discount

• A portfolio discount may be appropriate for companies that have two or more non-coinciding areas of activity.

• The meaning of this discount is that a buyer who intends to acquire a company in a certain industry may wish not to pay the full price of the company, including those activities in which he is not interested.




• Damodaran A. “Investment Appraisal. Tools and methods for valuation of any assets”, Moscow, Alpina Business Books, 2004