VALUATION Corp. provides business valuation services in Moscow and other Russian regions
Business valuation is the process of determining the value of company as a functional business generating profit for its owner and it can be made using three different approaches.
The first approach in business valuation is to determine the value of all assets held by the company: real estate, machinery (equipment), stocks, financial investments, intangible assets and then subtract total amount of company’s liabilities from the total value of all assets.
The second approach to business valuation is to estimate its value based on the company’s financial performance, taking into consideration historical, current and future cash flow which company could generate given the existing competitive environment on the market.
The third approach is to compare the subject business with similar (analogue) companies which were recently sold on the market or whose shares are publicly listed.
Finally, the comprehensive analysis of the results from all three different valuation approaches allows valuer to get the actual market value of business.
We have extensive experience in providing professional business valuation services for companies located in Moscow and throughout other Russian regions. Our valuation reports meet all Russian and international standards and have the status of a independent public document of evidential significance.
Documents and information required for business valuation:
- Copies of company’s incorporation documents.
- Brief description of main activities and organizational structure of the company.
- Accounting records for the last 3-5 years or for a feasible number of prior periods (balance sheet and P&L for each year).
- Most recent auditor’s report (if audited).
- Fixed assets schedule.
- Property inventory lists.
- Information about all assets (real estate, inventories, shares of unrelated companies, bills, intangible assets, etc.)
- Analysis of accounts payable.
- Analysis of accounts receivable:
- aging analysis;
- by categories of receivables;
- proportion of doubtful debts.
- Information about affiliated companies (if any) and their financial documents.
- Company’s plan of development for the next 3-5 years indicating expected revenues from each product/service, required investments, expenditure, net income in each year.
This list of required documents and information is preliminary and may be reduced or expanded after the valuer’s detailed review of the valuation assignment, depending on purpose of valuation.
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