Carrying out the valuation of a business or property is especially important when you are buying or selling, to secure a bank loan, or to opt for insurance coverage. The assessment, when it is made with technical precision, enhances credibility and reduces the subjectivity in relation to the market price of the business. The statistics show that businesses that sell backed by an appraisal achieve on average close to 10% discounts below the original price.
The valuation methods used by our professional team are:
- Comparative Market Analysis: We identified business sale transactions or similar properties that have recently made , values are adjusted according to the differences that may exist with the business or property to appreciate and apply the relevant formulas for the comparative value market.
- Replacement Cost Analysis: It is based on calculating the cost required to duplicate exactly the business or property under study provided they have the same use and income generating capacity, although they differ physically.
- Analysis of the Income Capitalization: This method determines the present value of the business or property by applying to the flow of future benefits estimated capitalization rate.
- Liquidation Value: By this method the appraiser assumes that the business will be liquidated and for evaluation examines variables such as the firm’s ability to meet its short-term, the value of inventories and the liquidation value of the preferred shares.
