Property Of An Enterprise

It should also be noted that the results of the valuation of the property of an enterprise also affect the long-term market sustainability of the company. For example, with an increase in the volume of ownership, the capital structure of an enterprise is improving – this has a positive effect on investment attractiveness. However, at the same time, depreciation deductions, the size of which may significantly increase during revaluation, are semi-fixed costs. An increase in these expenses (and, accordingly Moreover, the overestimation of depreciation charges causes problems with sales – in order to remain break-even, the company will need to increase sales or the cost of products. This is not always possible and feasible due to the prevailing market conditions.

Anyway, the valuation of the property of an enterprise is the most effective tool for managing the assets of an enterprise and helps in solving such problems as optimizing asset management policies, ensuring the sustainability of current activities, and increasing investment attractiveness. This, ultimately, with proper interpretation, leads to an increase in the competitiveness of the company.

  • Enterprise property valuation methodology
  • Property valuation is carried out by methods combined into three groups:
  • Cost approach;
  • Income approach;
  • The approach of comparative analysis of sales.

The company “Active Business Consulting” uses in its work all three approaches to determine the value of the assets of the enterprise. The reports provided fully comply with the requirements of legislation and regulations, standards and recommendations on valuation activities.

The company “Active Business Consulting” is ready to perform an assessment of the property

Check for more read:  http://www.wcvaluers.com.au/

Features of an enterprise property valuation :

When deciding on the revaluation or initial valuation of the assets of the company , the owner must take into account that the depreciation charges will form the investment opportunities of the company. However, in the conditions of a constant shortage of cash or other means of payment, some owners use depreciation to replenish working capital, which partly solves the problem of maintaining liquidity in the necessary order.

If the company has an established sales market, and the profit from its production activity is regularly credited to the account, and the solvency problem is not so acute, then the company is most likely interested in updating its technological or production base in order to increase competitiveness and reduce costs. , and, as a result, the amount of depreciation. And therefore, if the owner assumes an assessment of the assets of the enterprise to reduce the value of the property, this will deprive the company of a reliable source of funds.

It should also be noted that the results of the valuation of the property of an enterprise also affect the long-term market sustainability of the company. For example, with an increase in the volume of ownership, the capital structure of an enterprise is improving – this has a positive effect on investment attractiveness. However, at the same time, depreciation deductions, the size of which may significantly increase during revaluation, are semi-fixed costs. An increase in these expenses (and, accordingly, their share in the cost price) leads to higher risks of loss of profit and stability with a decrease in cash flow and a fall in sales. Especially attentive to the valuation of the property should be considered capital-intensive enterprises with a large proportion of chronic costs.

Moreover, the overestimation of depreciation charges cause’s problems with sales – in order to remain break-even, the company will need to increase sales or the cost of products. This is not always possible and feasible due to the prevailing market conditions.

Anyway, the valuation of the property of an enterprise is the most effective tool for managing the assets of an enterprise and helps in solving such problems as optimizing asset management policies, ensuring the sustainability of current activities, and increasing investment attractiveness. This, ultimately, with proper interpretation, leads to an increase in the competitiveness of the company.

  • Enterprise property valuation methodology
  • Property valuation is carried out by methods combined into three groups:
  • Cost approach;
  • Income approach;
  • The approach of comparative analysis of sales.

The company “Active Business Consulting” uses in its work all three approaches to determine the value of the assets of the enterprise. The reports provided fully comply with the requirements of legislation and regulations, standards and recommendations on valuation activities.

The company “Active Business Consulting” is ready to perform an assessment of the property of the enterprise professionally and efficiently – you get the opportunities that every manager dreams of.

The valuation of the property complex is the most complete type of valuation, including:

Real estate valuation;

Machinery and equipment;

Vehicles;

Financial investments;

Intangible assets and stuff.