VALUATION Corp. Provides Business Valuation Services in Moscow and Russian Regions
- Business as Valuation Subject
- Business Valuation Services in Russia
- Required Documents and Information
Business is a legal activity, usually associated with production and sales of goods or services, aimed at making profit. In Russia legal forms of doing business can vary – business can be operated as a sole proprietorship or as some form of legal entity (joint-stock or limited liability company, partnership or other form of incorporation).
As a rule, business of a sole proprietor is difficult (often impossible) to separate from its owner (many intangible business assets of a sole proprietorship are inseparable from an individual) and therefore such business is usually hard to sell as an operating business. Usually, a sole proprietor can only sell his separable business assets but these separable assets might not be enough to transfer his current business “as is” to the new owner.
If business enterprise is incorporated and operated as a company, then there are no limitations to transfer it to a new owner by selling company stock (shares, equity).
So, formal subjects in business valuation for purposes, implying that the business will change hands, are:
- for incorporated business - company stock (shares, equity);
- for sole proprietorships – all business assets separable from the owner.
If business valuation purpose does not imply that the business will be sold or otherwise change ownership (valuation for consulting purpose, for example), then it is possible to value the business itself as a legal profit-making economic activity.
Valuation of a business enterprise as legal profit-making economic activity and valuation of the company operating the business have some important difference. Since value of the business depends mainly on its future projected profit, any assets, which might be in possession of the company, but are not used (not needed) for doing business (surplus assets), do not increase the value of the company’s business, but they do increase the value of company stock. Therefore, valuation of business as profit-making economic activity, unlike valuation of company, does not take into consideration any surplus assets.
We have been providing professional business valuation services in Russia and internationally for more than 20 years now. We gained significant experience valuing companies from different industries - telecommunications, printing, construction, financial services, publishing, insurance, banking, food processing and many others.
In addition to appraising market value of a business enterprise, we also provide services of investment analysis and determination of the investment value of business projects.
We always do our best to meet our clients’ valuation needs. For more information on business valuation in Russia, please contact us.
- Copies of incorporating documents.
- Description of business and organizational structure of the company.
- Annual balance sheet and P&L for the last 3-5 years.
- Most recent auditor’s report (if audited).
- Fixed assets lists with identification data - real estate, machinery and equipment, intangibles.
- List of financial assets - stocks, promissory bills, bonds, etc.
- List of supplies.
- Analysis of accounts receivable:
- by debtor;
- by categories of receivables;
- proportion of doubtful debts.
- Information about subsidiaries (if any).
- Business plan for the next 3-5 years (if available).
Depending on the nature of the business, structure of company’s assets and other factors, the above list of information and documents, may be reduced or expanded after our detailed review of the valuation assignment.
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