How to properly evaluate a ready-made business? Business valuation. How to evaluate a business before you buy it Calculation of the cost of business business processes

Buying a ready-made business in St. Petersburg is a complex and time-consuming process. One of the key steps is the evaluation of a finished business. Correctly determining the value of a business is important for both the buyer and the seller.

Problems of pricing in the ready-made business market

The seller of a ready-made business most often overstates the cost, because the object is perceived by him as a child in which he has invested his strength and money. Businessmen selling ready business in St. Petersburg, sometimes even offended when the buyer tries to reduce the price. Therefore, an entrepreneur who decides to buy a ready-made business in St. Petersburg must also make an assessment so as not to overpay for the object.

Evaluation of a ready-made business is a tool for forming an adequate price

Professional brokers of Altera Invest explain that by playing the price on the market of a ready-made business, you can change a lot. There is always a chance to buy or sell a business at an overpriced or underpriced price.

The task of a professional broker is to ensure that both the seller and the buyer win in the end. In the black, both can remain in the event that a correct assessment of the business has been made.

Assessment Methods

According to experts, there are several approaches to evaluating a ready-made business:

Cost approach. In order to give a correct estimate, you need to calculate what costs you would incur if you decided to create a business from scratch: how much money would you spend on renovating the premises, buying equipment and Supplies, recruitment. This also includes months of "downtime", for which you will also need to pay rent.

For example, according to the drawn up business plan, the total amount reaches 3 million rubles, while the owner offers you to buy a beauty salon for 5 million rubles. Here you can safely point out to the seller of the business that it is more profitable for you to organize your own business than to acquire his business.

This is a good method, however, Altera Invest's professional business brokers point out that this kind of assessment does not take into account the intangible value of the company. That is, reputation, brand, various know-how, accumulated client base etc.

Comparative approach. Do not forget that no two businesses are the same. This is due to the fact that even if one ready-made business is located on the main street, and the other is 50 meters from it, but around the corner, of course, the level of income will be different. Accordingly, the cost of the finished business will be different.

That is why, among business buyers, the income method of evaluating a finished business is most often used. After all, having bought a business, they want to recoup it in the shortest possible time. This kind of approach is best applied to a business that generates good profits.

Mixed way. This is a combination of the two above. So you can get the most objective picture. A competent and reliable assessment of a ready-made business can only be given by professionals who have been working on the market for many years.

The market for the sale of ready-made businesses in Russia is growing year by year. All more people want to invest money, even if small, in a real business, to try themselves as an entrepreneur. And often the acquisition of an already operating company is the best option to achieve these goals. But only if you approach the issue thoughtfully and thoroughly.

The slightest resistance of the seller in providing information is a danger signal!

When buying a ready-made business, regardless of its specifics, you can use the following algorithm of actions.

To begin entrepreneurial activity(as well as expanding an existing one) in two ways: create new business or buy ready made. After evaluating the pros and cons of the second option, you can decide whether it is right, or it is better to use the first option.

Advantages of a ready-made business:

• History of development, good or bad, which makes it possible to evaluate it.
• Availability of premises and equipment.
• Completed staff.
• Established relationships and distribution channels.
• A finished product (service), sometimes a well-known brand.
• A certain demand for goods (services), the ability to predict its change.
• Detailed financial and accounting reports.

Cons of a ready-made business:

• The equipment may be worn out, and technological processes- outdated.
• The lease may not be renewed.
• Staff may be underskilled
• Counterparties may be unreliable, relations with them could be spoiled by the previous owner.
• Subsequently, debt obligations (unpaid taxes, penalties and customs duties or warranties).

STEP 2. Choose the type of business to buy

To do this, you need to answer several questions:

1. Is there any kind of activity and business that you have dreamed of?

2. What type of business best matches your knowledge, skills and past experience?

3. What do you want to do: production, wholesale, retail or service?

4. Are you interested in import-export business?

4. Do you want to involve your family in work in a ready-made business?

Experts recommend that you first make a choice between production, retail, wholesale and services, then resolve the issue of import-export, and then determine a specific product (service) or market within the selected sector.

STEP 3. Decide on funds

First of all, decide how much of your own funds you can allocate for the transaction. Then decide how much money you can and are willing to borrow (for example, from a bank).

Note: the possibility of raising borrowed funds for the acquisition of a business depends on the availability of liquid fixed assets and real estate. If you purchase a business that owns such assets, then in most cases you can borrow 50% of the total cost of the business or investment project. Your personal assets can also serve as collateral for a loan to buy a new business.

STEP 4. Choose the cost-effective options

Entrepreneurs who want to sell their business place ads in free classified newspapers or line ads department of local periodicals, in any business publications or newsletters, on specialized Internet sites. Another source of offers is brokerage companies specializing in the sale of ready-made businesses.

Note: sellers do not always “publicly” announce the sale of their business. The reason is the need for the strictest confidentiality, as the announcement of the sale can cause excitement among customers, employees and suppliers. And many potential sellers prefer to use face-to-face networks to find buyers.

Therefore, it is also necessary to make inquiries among friends, acquaintances, entrepreneurs, lawyers, bank employees, accountants, consultants and colleagues. You can also interview suppliers or distributors in the business you are interested in.

STEP 5. Find out the reasons for the sale of selected companies

The previous owner may have several of them:

• Changing of the living place. Lack of direct control and management of the process.
• Disagreements between owners. No joint agreement reached on ways further development companies.
• Loss of interest in business. After 6-8 years, the activity may simply cease to be satisfying.
• Illness, old age. Limited opportunities for the owner to manage the business, and there are no worthy successors to the business.
• The need for investment in another project. The owner found a more profitable and less burdensome line of business.
• Sale of non-core assets. Some activities of large enterprises or holdings are less profitable or do not fit into the overall development concept.

In principle, all reasons can be grouped as follows:

• this business has ceased to bring sufficient profit (there is a recession and decline in business activity in the industry; the company is under the threat of bankruptcy; weak management; the company is involved in criminal scams, etc.);
• the owner is going to do some other business or diversify his activities; intends to retire for personal reasons; he does not have enough funds to develop the company.

It is clear that the purchase of a company is expedient only when the owner of the company is guided by considerations included in the second group.

In principle, at this stage, out of all the previously selected options, two or three suitable options remain.

In conditions Russian market it is not yet possible to estimate the value of a company based on market value its shares, since only large enterprises are listed on the open stock market. Therefore, when evaluating small and medium-sized businesses, experts recommend using the following approaches: profitable, market and costly.

income approach

With this approach, the value of the company is determined by the amount of expected income. This method assumes that the buyer will not pay more for the business than the present value of future earnings for the period of interest. Using this approach, the buyer calculates various options for business development. However, with this approach, the level of risk is often determined too subjectively. This method valuations are good if the company's income is positive and stable.

Market Approach

The value of a business is estimated by comparing recent sales of companies of comparable size. The main condition for applying this approach is a mature market. The value of the company being valued (V1) is determined as the product of the ratio of the market price of an analogue company (V2) and its base indicator (R2) to the base indicator (R1) of the company being valued: V1=V2/R2×R1. The basic indicators are usually: net profit, book value of the enterprise. When choosing comparable companies, they are guided by the following requirements: the industry of enterprises must match, the quantitative and qualitative characteristics of the company must be approximately equal.

Cost approach

The cost of a business is determined by the amount of resources spent on its reproduction or replacement, taking into account physical and obsolescence. This approach is most effective when the buyer is going to compare the cost of acquiring a business with the cost of setting up a similar business.

There is no clear answer as to which assessment method to use. In each case, approaches are combined depending on the specifics of the business.

Note: at this step, it makes sense to turn to independent consultants, business brokers or professional appraisers. They often play a vital role. After all, determining the value of a business is a process that requires professional knowledge and experience in various areas of law, mathematical analysis, economics, accounting and auditing.

At this stage, as a rule, one suitable option remains.

STEP 7. Study the chosen business in detail

If funds allow (and the game is worth the candle!), It is best to turn to professionals again and order Legal Due Diligence (“due diligence”) - a comprehensive check of the seller for “due diligence”. At a minimum, it will allow clarifying the accuracy of the legal and financial information provided, verifying the correctness of the paperwork and their compliance with applicable law. As a maximum, "due diligence" includes conducting a legal and financial audit of accounting and tax accounting, assessing the compliance of top managers with their positions, conducting an inventory of property, etc. to infinity.

If there are not very many doubts, and the amount of the transaction is not so large, you can try to do the above procedure yourself: ask as many questions as possible, demand reporting, inquire about numbers and models of equipment and dates of their purchase, inquire about business reputation, find out about all obligations of the acquired company, etc.

Note: the slightest resistance of the seller in providing the information you are interested in is a danger signal!

Serious reasons for concern are also:

1. Shortened rigid time frame for selling a business.

2. Missing Key information by object.

3. Obtaining even existing information is difficult.

4. There is no clear reason for the sale or justification for the reason for the sale is not credible.

5. It was found that at least part of the information about the object was distorted or misinterpreted by the seller.

STEP 8. Minimize possible risks

1. Make inquiries about anything that could potentially harm your business.

2. Find out the state of the property complex and the features of its location. This will prevent problems, for example, in connection with the termination of the lease.

3. It is necessary to rely on facts and, if possible, not to take a word, no matter how trustworthy the seller may be. This is especially true for the volume of profit and turnover of the company, declared by the seller.

4. Offer to conclude a guarantee obligation on the absence of debts that do not pass through the accounting department. It is signed by all founders and the CEO. The legal protection of the buyer is that after signing the guarantee obligation, they are personally liable for any borrowing by the company over the past three years. In the event of negative consequences, the buyer has the opportunity to send creditors to their real debtor, or, if the case goes to court, file a recourse claim to protect their rights.

5. Lawyers also recommend compiling detailed plan transfer of management powers. This is especially important for maintaining relationships with customers, suppliers, other business partners and employees of the acquiree. After all, it is important for the buyer to maintain a viable business.

6. In the agreement with the seller, it must be indicated that the new owner acquires only those debts related to the activities of the enterprise that are specified in the agreement. And the debts connected with the previous activity of the enterprise, do not pass to the new owner. The agreement and its annexes must contain a detailed list of all debts included in the enterprise, indicating the creditors, the nature, size and timing of their claims.

STEP 9. Start negotiating a purchase

If all your doubts are resolved in a positive way, make a formal offer and proceed to negotiations.

Note: sellers prefer not to deal with frivolous buyers, so do not be surprised if you are asked to pay a deposit, similar to what is done during real estate transactions.

As a rule, in negotiations, both parties start with maximum and minimum offers and gradually soften their terms. Therefore, you must determine in advance the price and terms on which you agree to acquire the business. Naturally, start with more favorable conditions for yourself. Be prepared for the seller to meet your first offer with terms you find unfair. This is an inevitable part of bargaining. If your intentions are serious, work towards conditions that you agree to accept.

STEP 10. Get a business!

Reference

Ready-made business sales market: results of 2006

(www.1nz.ru/readarticle.php?article_id=1278)

The most demanded and offered, as usual, are cafes and small restaurants in the price range of $50-150 thousand; hairdressers, beauty salons ($25-50 thousand); car services ($100-250 thousand).

Offers of $10-20 thousand prevail among travel agencies, for which the demand is usually very insignificant. Worthy offers can be considered travel companies that have not only a travel agency, but also a tour operator license, having their own representatives abroad and contracts with hotels and inns. But the price of such a company will already be from $30,000 and more.

There have been certain preferences in acquiring a business related to the provision of intangible services: consulting, auditing companies, educational institutions. Investors are ready to invest up to $150,000 in such companies that have existed for more than 5-7 years and have all the necessary licenses and permits. Such types of businesses as modeling and concert agencies began to be offered. There were more proposals for the sale of advertising and advertising production companies.

Oversupply seen in medicine and pharmacology medical centers and dental clinics and, on the contrary, the demand for pharmacies and pharmacy kiosks exceeds supply.

AT retail there is a significant excess of supply over demand. This is typical for small shops and pavilions in shopping malls worth 30-180 thousand dollars.

Among manufacturing enterprises factories for the production of bricks, blocks, tiles are popular. The buyer can pay up to $ 1 million for such a business, but he must be sure that all old connections and consumers will remain. At the same time, the demand for such a type of business as the production of PVC windows and doors is decreasing. There are proposals for food production(sausage, confectionery shops) worth $400-700 thousand, but the demand for them is low.

What methods (methods) are used to assess the value of a business? How is business valuation carried out by example and what are the goals for this? What documents are needed to assess the business of an enterprise?

Hello everyone who visited our resource! In touch Denis Kuderin is an expert and one of the authors of the popular HeatherBober magazine.

In today's publication, we will talk about what a business valuation is and why it is needed. The material will be of interest to present and future entrepreneurs, directors and managers of commercial companies and all those who are close to business and financial topics.

Those who read the article to the end will get a guaranteed bonus - a review of the best Russian companies specializing in business valuation, plus advice on choosing a reliable and competent appraiser.

1. What is a business valuation and when is it needed?

Any business - whether it is a plastic cup manufacturing company or an automotive complex - strives to develop and expand its sphere of influence. However, it is impossible to correctly assess your prospects without a comprehensive analysis current position affairs.

It is business valuation that gives owners and managers of existing commercial enterprises a real picture of the company's assets and its potential.

When does a business need an appraisal?

• sale of the entire enterprise or its shares in the form of shares;
• rent of an operating business;
• development of new investment directions in order to expand and develop the company;
• revaluation of funds;
• reorganization of the company - merger, separation of individual objects into independent structures;
• liquidation of the company as a result of bankruptcy or termination of activities;
• issue or sale of shares;
• optimization of production and business activities;
• changing the format of the company;
• leadership change;
• transfer of assets as collateral;
• transfer of shares of the enterprise to the authorized capital of a large holding;
• company insurance.

As you can see, there are many situations in which a business needs a professional assessment. But the main goal of such a procedure is always the same - a competent analysis financial efficiency businesses as a means of making a profit.

When initiating business valuation activities, stakeholders want to know what revenues a particular business structure is generating or will generate in the future. Sometimes the task of the assessment is even more specific - to answer the questions: develop or sell the company, liquidate it or try to reorganize, whether to attract new investors?

The value of a business is an indicator of its success and efficiency. The market price of a company consists of its assets and liabilities, the value of personnel, competitive advantages, profitability indicators for the entire period of existence or a specific time period.

Small business owners and individual entrepreneurs may have a question - is it possible to evaluate the enterprise on their own? Alas, the answer is no. Business is a complex and multifaceted category. You can get a rough estimate, but it is unlikely to be objective.

And one more important nuance - independently obtained data do not have an official status. They cannot be considered as full-fledged arguments and will not be accepted, for example, in court or as.

2. What are the goals of business valuation - 5 main goals

So, let's consider the main tasks that are solved during the business valuation procedure.

Goal 1. Improving the efficiency of enterprise management

Efficient and competent enterprise management is an indispensable condition for success. The financial status of the company is characterized by indicators of stability, profitability and sustainability.

Such an assessment is needed mainly for internal use. The procedure identifies excess assets that slow down production and undervalued industries that can bring profit in the future. It is clear that the first must be disposed of, the second - to develop.

Example

In the course of a business assessment in a trading company, it turned out that the use of rented warehouses for storing products is 20-25% cheaper than maintaining and maintaining their own premises, which are on the balance sheet.

The company decides to sell its warehouses and continue to use only leased space. There are cost savings and optimization of production processes.

Goal 2. Purchase and sale of shares in the stock market

The management of the company decides to sell its shares on the stock market. To make an economically viable decision, you need to evaluate the property and correctly calculate the share that is invested in securities.

Selling shares is the main way to sell a business. You can sell the company as a whole or in parts. Obviously, the cost of a controlling stake will always be higher than the price of individual shares.

At the same time, valuation is important for both stockholders and buyers. It is also desirable that the appraiser not only name the market price of the package, but also analyze the prospects for the development of the business as a whole.

Goal 3. Making an investment decision

Such an assessment is carried out at the request of a specific investor who wants to invest in an existing enterprise. Investment value is the potential ability of invested funds to generate income.

The appraiser finds out the most objective market value of the project in terms of investment perspective. Take into account, for example, the prospects for the development of the industry in a particular region, the direction of financial flows in this area, the general economic situation in the country.

More information - in the article "".

Goal 4. Enterprise restructuring

The main goal of the owner ordering an appraisal during the restructuring of the company is to choose the most optimal approach to the processes of changing the structure of the company.

Restructuring is usually carried out in order to improve business efficiency. There are several types of restructuring - merging, accession, separation of independent elements. Evaluation helps to carry out these procedures with minimal financial costs.

With the complete liquidation of the object, the assessment is needed mainly for making decisions on the return of debts and the sale of property at free auction.

In the process of restructuring, it is often required to carry out, the current assets and liabilities of the company, complete.

Goal 5. Development of an enterprise development plan

Development strategy development is impossible without assessing the current status of the company. Knowing the real value of assets, the level of profitability and the current balance, you will rely on objective information when drawing up a business plan.

In the table, the assessment objectives and features are presented in a visual form:

№	Objectives of the evaluation	Peculiarities
1	Improving management efficiency	Results apply for internal use
2	Purchase and sale of shares	Valuation is important for both sellers and buyers
3	Making an investment decision	The object is evaluated in terms of investment attractiveness
4	Business restructuring	Evaluation allows you to change the structure, taking into account maximum efficiency
5	Development plan development	Evaluation allows you to draw up a competent business plan

Method 3. Estimated by industry peers

It uses data on the purchase or sale of enterprises close in profile and volume of production. The method is logical and understandable, but you need to take into account the specifics of the company being valued and specific economic realities.

The main advantage of this method is that the appraiser focuses on actual data, not abstractions, and takes into account the objective situation on the sales market.

There are also disadvantages - the comparative approach does not always affect the prospects for business development and uses average indicators of industry peers.

Method 4. Estimated cash flow forecast

The assessment is carried out taking into account the long-term prospects of the company. Specialists need to find out what profit a particular business will bring in the future, whether investments in the enterprise are profitable, when the investments will pay off, in what directions the funds will move.

4. How to assess the value of the business of an enterprise - a step-by-step instruction for beginners

So, we have already found out that only professionals can competently evaluate a business. Now consider the specific steps that business owners need to take.

Step 1. Choosing an appraisal company

The choice of an appraiser is a responsible and important stage of the procedure. The final result depends entirely on it.

Professionals are distinguished by the following features:

• solid experience in the market;
• use of up-to-date technologies and methods, modern software;
• availability of a functional and convenient Internet resource;
• a list of well-known partners who have already used the services of the company.

The specialists themselves, who will carry out the assessment, must have permits and insurance of their professional liability.

Step 2 We provide the necessary documentation

In the appraisal firm, of course, they will explain in detail what documents you need to provide, but if you collect the package in advance, this will save time and immediately set the appraiser on a business wave.

Clients will need:

• title documents of the company;
• company charter;
• registration certificate;
• a list of real estate, property, securities;
• accounting and tax reports;
• list of subsidiaries, if any;
• certificates of debt on loans (if there are debts).

The package is supplemented depending on the goals and features of the procedure.

Step 3 We coordinate the business valuation model with the contractor

Usually the customer knows for what purpose he conducts the assessment, but is not always aware of which methodology is best to apply. During the preliminary conversation, the expert and the client work together to develop an action plan, determine the methods of evaluation and agree on the timing of its implementation.

Step 4 We are waiting for the results of industry market research by experts

To begin with, appraisers need to analyze the situation in the industry segment of the market, find out current prices, trends and development prospects for the area under study.

Step 5 We follow the business risk analysis

Risk analysis is a necessary stage of business assessment. The information obtained in the course of such an analysis is necessarily used in the preparation of the report.

Step 6 We control the determination of the development potential of the enterprise

Professional appraisers always take into account the prospects for business development, but it is desirable for clients to control this stage of the study and be aware of the results. It is always good to know what potential your enterprise has.

Step 7 We receive a report on the work done

The final stage of the procedure is the preparation of the final report. The finished document is divided into separate positions and contains not only bare figures, but also analytical conclusions. The report, certified by signatures and seals, has official force in resolving property disputes and in litigation.

How to conduct an assessment as competently and safely as possible for your company? The best option is to involve independent lawyers as consultants at all stages. This can be done by using the services of the site Lawyer. The specialists of this portal work remotely and are available around the clock.

Most of the consultations on the site are free. However, if you need more in-depth assistance, the services are paid, but the amount of the fee is set by the customer.

5. Professional assistance in business valuation - an overview of the TOP-3 valuation companies

No time, desire or opportunity to look for an appraiser yourself? Don't worry, take advantage of our expert review. The top three Russian appraisers include the most reliable, competent and trusted companies. Read, compare, choose.

It doesn’t matter for what purpose you are conducting an assessment - buying and selling, lending on collateral, improving management, reorganization - KSP Group specialists will carry out the procedure professionally, promptly and in accordance with all the rules.

The company has been operating on the market for more than 20 years, has about 1,000 regular customers, is well versed in the realities of Russian business, and provides free consultations to customers. Among the permanent partners of the company famous companies, small and medium enterprises.

The organization has membership in the Self-Regulatory Organization ROO (Russian Society of Appraisers) and liability insurance for 5 million rubles.

The company was founded in 2002. The company guarantees operational work(Business assessment period - 5 days) and offers adequate prices (40,000 for a standard assessment procedure). In its methods, the organization adheres to the principles of "Ethical Business" - transparency, honesty, openness, compliance with the terms of the contract, responsibility.

Yurdis employs 20 professional appraisers, members of the largest Russian SROs. Each of the specialists has liability insurance in the amount of 10 million rubles, diplomas and certificates confirming highly qualified. Among the well-known clients of the company are Gazprombank, Sberbank, Svyazbank, Center for Organization of Military Mortgage.

3) Atlant Grade

The company has been doing business in the appraisal market since 2001. Works with tangible and intangible assets, develops and predicts ideal schemes for increasing income, cooperates with enterprises in all regions of the Russian Federation.

The list of advantages includes the reference accuracy of estimates, competent legal registration reports, a clear understanding of the goals and objectives of customers. The firm is accredited by commercial and state banks of the Russian Federation, uses an extended methodological base in its work, and applies its own technological and scientific developments.

And a few more tips on choosing a competent appraiser.

Reputable companies have a well-designed and flawlessly functioning website. Through the Internet resource of such companies, you can get free consultations, order services, talk with managers and representatives of the support service.

Conversely, one-day firms may not have a network portal at all, or it may be designed as a cheap one-page site. No additional information, analytical articles, interactive features.

Tip 2. Refuse to cooperate with broad-based companies

Organizations that position themselves as universal firms do not always have the appropriate level of competence.

The value of the current business is an objective indicator of the functioning of the enterprise and reflects the current value of the benefits in the future from its functioning. This allows you to calculate the most likely price at which it can be sold on the open market. The question of how to assess the value of a business is of a practical nature and is of great importance for every entrepreneur at various stages of the company's functioning.

How is business valuation carried out

First of all, it is necessary to determine the main goal that the business valuation process has. There are two options here.

First option- the cost is necessary for the implementation of certain legal actions. That is, you need to get official conclusion in the form of an "Evaluation Report", which will be prepared by an independent appraiser licensed to carry out this procedure.

Second option– an appraisal is carried out to determine how much the real value of your business is. To do this, you no longer need the "Valuation Report", in accordance with the requirements of Law No. 135-FZ.

These options have a fundamental difference not in the quality of the work that the appraiser performs, but in relation to the results obtained. Valuation activity is a licensed type of activity. For this reason, it is subject to certain requirements from the current legislation. The fulfillment of these requirements in the process of compiling the Assessment Report, as a rule, causes an increase in the cost of the specialist's work.

If the results of the work are drawn up not in the form of an official Report, but as a Conclusion, during the negotiations, a detailed development and agreement of a clearly formulated task for the assessment takes place. According to this task, the appraisers will perform only the procedures you specify, which are required to resolve certain issues.

Business valuation is a procedure in which it is required to calculate the value of a business as a property complex, which provides its owner with a profit.

The assessment takes into account the value of all assets of the company: machinery, real estate, equipment, financial investments, stocks, not tangible assets. It is also necessary to take into account past and future income, possible prospects for the further development of the company, the competitive environment and the state of the market as a whole. Based on a comprehensive analysis, the company is compared with peer companies. After that, information about the real value of the business is already formed.

Methodology

Three methods are used to calculate the value of an enterprise.: costly, profitable and comparative. In practice, there are different situations, and for each class of situations, their recommended methods and approaches are used.

For an adequate choice of method, it is necessary to classify situations in advance, determining the type of transaction, the features of the moment for which the assessment is carried out, and so on.

Certain types of enterprises are most often evaluated on the basis of commercial potential. For example, for a hotel, guests are the source of income. This source is subsequently compared with the cost of operating expenses to determine the profitability of the business. This approach is called profitable.. This method is based on discounting the profit received from the rental of property. The valuation results under this method include both the land value and the building value.

If a business is not bought or sold, a developed business market in this direction does not exist, for example, consider a hospital or a government building, then assessment can be carried out on the basis of the cost method, that is, it will take into account the cost of building a building, taking into account depreciation and depreciation costs.

If there is a market for a business that is similar to the one being valued, the market or comparative method can be used to determine the market price of the enterprise. This method is based on the selection of comparable properties that have already been sold on the market.

Under ideal conditions, all three methods used should give the same value. But in practice, markets are imperfect, producers may operate inefficiently, and users may have imperfect information.

These approaches involve the use various methods estimates.

The income approach includes:

• cash flow discounting method, focused on the assessment of the existing business, which will continue to operate. It is more often used to evaluate young companies that have a promising product, but have not yet earned enough income for capitalization.
• the capitalization method is used for those enterprises that, during capitalization, accumulated assets in previous periods.

The cost approach includes:

• salvage value method;
• the net asset method, applicable in cases where the investor plans to significantly reduce the volume of output or even close the enterprise.

Comparative approach includes:

• the method of industry coefficients, focused on the assessment of existing companies, which will continue to operate in the post-reporting periods.
• a method of transactions applicable in cases where it is planned to reduce output or close an enterprise.
• capital market method, also focused on operating enterprises.

Methods of the comparative approach are applicable only when choosing a company-analogue, which must be of the same type as the company being valued. Below we will briefly review the use of the main methods for calculating the value of a business.

Brief instruction

To calculate the value of your business in the forecast period, you must use the discounted cash flow method. A discount rate is used to bring future income to present value.

Then, according to the forecast, the value of the business is calculated using the following formula:

P = CFt/(1+I)^t,
where I- discount rate, CFt denotes cash flow, and t is the number of the period for which the assessment is made.

At the same time, it is important to understand that your enterprise will continue to function in the post-forecast period. Depending on the further prospects for business development, various options are possible from complete bankruptcy to rapid growth. For calculations, the Gordon model can be used, which assumes stable growth rates of profits and sales and the equality of depreciation and capital investments.

In this case, the following formula is used:
P \u003d CF (t + 1) / (I-g),
where CF (t+1) reflects the cash flow for the first year of the post-forecast period, g– flow growth rate, I- discount rate.

This model is most appropriate when calculating indicators for businesses with a significant market capacity, stable supplies of materials, raw materials, as well as free access to financial resources and a generally favorable market situation.

If the bankruptcy of the enterprise and the further sale of property are predicted, then, To calculate the value of a business, you must use the following formula:
P \u003d (1-Lav) x (A-O) - Pliq,
where P liq- expenses for the liquidation of the enterprise, L cf– discount for urgent liquidation, O– amount of liabilities, BUT- the value of the company's assets, taking into account the revaluation.

Costs include insurance costs, taxation, appraiser's fees, management costs, and personnel payments. The liquidation value also depends on the location of the company, the quality of the assets, the overall market situation and other factors.

In the course of the assessment of domestic enterprises, the date of the assessment is of great importance. The binding of settlements to the date is especially important in a market that is oversaturated with property that is in a pre-bankrupt state and lacks investment resources.

The Russian economy is characterized by an excess of asset supply over demand. This imbalance affects the value of the property offered for sale. The price of property in a balanced market will not match the value in a depression. But investors and business owners will be primarily interested in the real value in a particular market under certain conditions. And buyers are focused on reducing the likelihood of loss Money so they require guarantees. When assessing the value of a business, it is required to take into account all risk factors, including bankruptcy and inflation.

In inflationary conditions, at first glance, it is best to use the discounted cash flow method for calculations. This is true only if the rate of inflation is predictable. However, it is quite difficult to predict the flow of income in the conditions of instability for several years ahead.