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The concept and types of enterprise value. Types of enterprise values

Short description

This term paper is the assessment of a 30% stake in OAO Mashservice.
This enterprise was chosen as the object of evaluation due to the dynamic development of the industry. To achieve this goal, the following tasks were set:

As an object of study, a service industry enterprise, namely OJSC "Mashservice", was chosen.

Introduction…………………………………………………………………………..….3

Chapter 1. Methodology for assessing the value of property………………………………..…..5
1.1. The concept of assessing the property complex………………………………………………………………………………………………………………………………………………………………………………………
1.2. Cost approach…………………………………………………………….…8
1.3. Income approach…………………………………………………………..….11
1.4. Comparative approach………………………………………………………..13

Chapter 2. Estimation of the cost of a 30% stake in Mashservice OJSC.....……...…15
2.1. Analysis of the activities of the agency JSC "Mashservice"………………...……15

2.3.4. Coordination of results……………………….…………………………….38

Conclusion……………………………………………………………………….…42

Attached files: 1 file

Ministry of Education and Science of the Russian Federation

Federal State Budgetary Institution of Higher Professional Education

Nizhny Novgorod State University

them. N.I. Lobachevsky

National Research University

Faculty of Management and Entrepreneurship

Department of Economics and Entrepreneurship

COURSE WORK

discipline: "Evaluation of property in the service sector"

“Valuation of the value of a service sector enterprise for the purpose of investment on the example of the Mashservice OJSC agency”

Performed:

student gr. 6-EMZ

Sycheva Elena Nikolaevna

____________________

Checked:

st.pr. Sorokin V. A.

____________________

Nizhny Novgorod

Introduction…………………………………………………………………………..….3

Chapter 1. Methodology for assessing the value of property……………………………… ..…..5

1.1. The concept of assessing the property complex……………… ……………………………………………………………………………………………………………………………………………………

1.2. Cost approach…………………………………………………………….…8

1.3. Income approach………………………………………………………….. ….11

1.4. Comparative approach………………………………………………………..13

Chapter 2. Estimation of the cost of a 30% stake in Mashservice OJSC.....……...…15

2.1. Analysis of the activities of the agency JSC "Mashservice"………………...……15

2.2. Analysis of the financial condition of the enterprise……………………………….17

2.3. Valuation of the 30% shareholding………………………………………...…25

2.3.1. Income approach …………………………………………………………...25

2.3.2. Comparative approach ……………………………………………………..30

2.3.3. Amendments……………………………………………………..…..34

2.3.4. Coordination of results……………… ……….………………………….38

Conclusion………………………………………………………………………….…42

References ……………………………………………………………...…43

Introduction

Business occupies a special place among the objects of assessment. When evaluating a business, the object is an activity aimed at making a profit and carried out on the basis of the functioning of the property complex of the enterprise.

Business (enterprise) valuation is one of the main tools in the market of capital transaction support services, which helps the investor to avoid risk. The dynamically developing market for the purchase and sale of enterprises, as well as investment, dictates the need for timely receipt of full information about the object of sale and purchase even at the stage of making a decision to conclude a transaction.

Theoretical knowledge and practical skills in the field of valuation, in our opinion, are a necessary component of the education of an economist, in whatever economic area he works, since they help him to abstract from private operations and present an enterprise as a property complex, a business unit in time, to evaluate the present its position and prospects based on the results of past years.

Business valuation is one of the management analysis tools that allows for forecasting and, consequently, prevention and reduction of the negative impact of crisis situations, and drawing up a business development plan. In a word, a competent assessment of an enterprise contributes to the devaluation of most risks.

The purpose of this course work is to evaluate a 30% stake in OAO Mashservis.

This enterprise was chosen as the object of evaluation due to the dynamic development of the industry. To achieve this goal, the following tasks were set:

analyze the macroeconomic situation in the industry to which the enterprise belongs;
assess the financial condition of the enterprise;
estimate the value of the company's shares.

As an object of study, a service sector enterprise, namely OJSC "Mashservis", was chosen.

Chapter 1. Methodology for assessing the value of property

1.1. The concept of assessing the property complex

To date, the valuation of property, or property complexes is the most common type appraisal activities, this is primarily due to the breadth of the range of appraisal objects classified as property.

Property is objects of utility that are owned or used by individuals or legal entities. In other words, property is a set of property rights of a particular legal or natural person.

Property complex - a complex of property rights of a legal entity, for all objects involved in the implementation of entrepreneurial activities.

As a result, the valuation of the property complex is the most complete type of valuation, which includes the valuation of real estate, machinery and equipment, vehicles, financial investments, intangible assets, and so on. When evaluating a property complex, in addition to evaluating all the components of this property complex, it is necessary to take into account the so-called synergy effect.

Currently, many factors are constantly changing the value of the property. These factors include: the economic crisis, depreciation, changes in property properties, rising and falling real estate prices, and others. All these factors make it much more difficult to obtain up-to-date information on the value of property objects. Property valuation allows you to accurately and accurately determine the value of property in a rapidly changing economic situation in the country.

Today, the valuation of property and property complexes are the most common types of valuation services.

Property appraisal is carried out in the following cases: purchase and sale of property; obtaining a loan secured by property; property insurance; property disputes; contribution of property to the authorized capital; transfer of property for rent; transfer of property to trust management; optimization of enterprise taxes; property registration and tax accounting; assessment of the total value of the organization that owns the property; development of a business plan for the enterprise; making managerial and investment decisions; carrying out the bankruptcy procedure of the enterprise; determining the initial price of property at auction; purchase and sale of an enterprise that owns property; merger or acquisition of an enterprise that owns property; seizure of property for state and municipal needs.

Types of property valuation depend on the purpose of its implementation and are as follows:

1. valuation of property of enterprises and its shares. It is a set of actions, the purpose of which is to establish the value of the company's assets that bring or can bring profit;

2. real estate appraisal. Contributes to the implementation of profitable transactions, the adoption of productive decisions for their implementation;

3. assessment of damage caused to property from natural disasters, floods, fires, illegal actions of persons or government agencies;

4. land valuation. Determining the value of one or more land plots;

5. appraisal of housing (apartments). May include both a full assessment of the value of housing and a share of ownership;

6. evaluation road transport. The process of determining the value of a vehicle on the market at present;

7. evaluation of machinery and equipment. The goal is to determine the real value. Two approaches are used: analogue and assessment at replacement cost, taking into account depreciation.;

8. assessment of damage from a traffic accident.

For each type of property valuation, there are special methods and approaches that allow you to most accurately and reliably determine the value of property.

Property appraisal includes the collection and analysis of data about the object by an expert appraiser to determine the total value, in accordance with this legislation and standards.

Objects of assessment: tangible property: movable, immovable; property rights.

Types of value in property valuation: market value - for the sale of an object; recovery - to create an identical object; investment - to identify promising income.

The totality of cost types gives a complete picture of the real price of the object.

The main stages of property valuation: conclusion of an valuation agreement; determination of property characteristics; analysis of the relevant market; choice of assessment method; carrying out calculations; conclusion of the final cost of the object; preparation of an assessment report

In some cases, the assessment of an enterprise is required by law, in some cases it can contribute to development and accelerate growth, and is carried out on its own initiative.

In any case, the assessment of the enterprise is the task of organizations, and, consequently, of professionals.

A distinction should be made between business valuation and enterprise valuation. The enterprise as a property complex includes all types of property intended for its activities: land, equipment, raw materials and products, intangible assets. Estimating the market value of the property complex of an enterprise means determining in monetary terms the value of the tangible assets of the enterprise as a set of values of fixed assets.

Business valuation operating enterprise somewhat different from the assessment of the enterprise as a property complex. This difference is due to the fact that business is a broader concept than a property complex. Business valuation includes determining the value of the company's liabilities and assets: real estate, machinery and equipment, inventory, financial investments, intangible assets. In addition, the performance of the company, its past, present and future income, development prospects and the competitive environment in this market are assessed. As a result of such an integrated approach, the real value of the business and its ability to make a profit are determined.

In accordance with Russian valuation standards, the procedure for estimating the market value of blocks of shares is carried out using three approaches: costly; comparative; profitable.

Each of these approaches has its own specific methods and techniques. The data used in one approach or another reflects either the present position of the company, or its past achievements, or expected future earnings.

After receiving the results of the assessment for each of the three approaches, the results of the company's market value are agreed upon and the package to be assessed is calculated.

1.2. Cost approach

The cost approach considers the value of the enterprise in terms of costs incurred. The balance sheet value of the assets and liabilities of the enterprise due to inflation, changes in market conditions, accounting methods used does not always correspond to the market value. As a result, the task arises of adjusting the balance sheet of the enterprise. To do this, the fair market value of each asset of the balance sheet is first assessed separately, then the current value of the liabilities is determined, and, finally, the current value of all its liabilities is subtracted from the fair market value of the total assets of the enterprise. The result shows the estimated value equity enterprises.

net asset method. The value of net assets (equity capital) of an enterprise is determined by the formula:

C \u003d A - O (1)

where C is the cost of equity;

A - the market value of all assets;

O is the present value of all liabilities.

Calculation of the cost using the net assets method includes several stages:

1. The real estate of the enterprise is evaluated at market value

2. The market value of machinery and equipment is determined

3. Intangible assets are identified and evaluated.

4. The market value of financial investments, both long-term and short-term, is determined.

5. Inventories are translated into current value.

6. Estimated receivables.

7. Deferred expenses are estimated.

8. Liabilities of the enterprise are translated into current value.

9. The cost of equity capital is determined by subtracting the current value of all liabilities from the fair market value of the sum of assets.

salvage value method. This method is used if it is planned to close the enterprise and sell its assets separately, as well as during the reorganization of the enterprise, the examination of programs for the reorganization of the enterprise, the financing of the reorganization of the enterprise, and the evaluation of applications for the purchase of the enterprise.

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Introduction

In the practice of transactions with enterprises, a distinction is made between the purchase and sale of an enterprise and the purchase and sale of business. There are also transactions with ready-made firms - this means the sale and purchase of legal entities - registered firms.

The terms "enterprise" and "business" are effectively the same when we are talking on sale and purchase, although in the current legislation such a phenomenon as business, missing, and company interpreted very one-sidedly. Civil Code uses the concept company in two different senses: as a subject of law (state and municipal enterprises) and as its object.

Subject of evaluation are professional appraisers with special knowledge and practical skills.

In the absence of private ownership of real estate, such a profession as an appraiser was not required, since the state represented by its bodies (Goskomstat, Bureau of Technical Inventory, etc.) itself determined the value of its assets.

With the revival of private property, it became necessary for a professional to participate in real estate transactions who could guide the seller and buyer in the value of the object involved in the transaction. World practice has shown that if an independent professional appraiser is not involved in real estate transactions, then one of the parties to the transaction is deprived or simply deceived (as happened at the first stage of state property privatization).

With the development of market relations in our country, more and more there is a need for professional and independent appraisers.

At present, we are at the stage of formation of the system of training, organization of activities, development of standards and ethical standards appraiser behavior. This process is going quite fast, as it is based, firstly, on the existing world experience, and secondly, on a high basic level of training of people involved in this professional activity.

In different countries, the formation of the profession of appraiser took place in different ways. Each country has developed its own criteria and requirements for appraisers. But there are general requirements that apply to the appraiser in all countries, without compliance with which he will not be able to operate in the real estate appraisal market.

Objectives of assessments and enterprises .

* Improving the efficiency of the current management of the enterprise, firm;

* determining the value of securities in the case of the sale and purchase of shares of enterprises on the stock market. To make an informed investment decision, it is necessary to evaluate the property of the enterprise and the share of this property attributable to the acquired block of shares, as well as possible future income from the business;

* determining the value of the enterprise in the event his sale and purchase in whole or in part. It is often necessary to evaluate an enterprise in order to sign an agreement establishing the shares of co-owners in the event of termination of the agreement or the death of one of the partners;

* enterprise restructuring. Conducting a market assessment is expected in the event of liquidation of an enterprise, merger, acquisition or separation of independent enterprises from the holding;

* development plan for the development of the enterprise. In the process of strategic

planning, it is important to assess the future income of the company, the degree of its stability and the value of the image; determining the creditworthiness of the enterprise and the value of collateral for lending;

* insurance, during which there is a need to determine the value of assets in anticipation of losses; taxation;

* making informed management decisions. Inflation distorts the financial statements of the enterprise, therefore, periodic revaluation of the enterprise's property by independent appraisers is necessary;

* implementation of an investment project for business development. In this case, to justify it, it is necessary to know the initial value of the enterprise as a whole, its own capital, assets, and business.

If the object of the transaction of sale, credit, insurance, rent or leasing, making a share is any element of the property of the enterprise, and also if property tax, etc. is determined, then the necessary object is separately assessed, for example, real estate, cars and equipment, intangible assets.

Thus, the validity and reliability of the assessment of the value of the property complex largely depends on how correctly the area of application of the assessment is defined: purchase and sale, obtaining a loan, insurance, taxation, etc.

At the same time, the same object, appraised at the same moment, will have a different value depending on the purpose of its appraisal, since the value will be determined by different methods and by different subjects.

1. Main types of value and principles of enterprise valuation

1.1 Main types of value

Appraisal activity consists in obtaining an idea of the value of the object of appraisal or the size of the owner's share at a particular point in time. A business can be valued differently depending on the purpose of the valuation and the circumstances. Therefore, an accurate determination of the value is required for valuation. In accordance with the Standards for Appraisal Activities approved by the Government Decree Russian Federation No. 519 of July 6, 2001, the following types of value are currently approved.

1 . Market value. " Market value - the most probable price at which this object can be alienated on the open market in a competitive environment, when the parties act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction, i.e. when:

* one of the parties to the transaction is not obliged to alienate the object of assessment, and the other party is not obliged to accept the execution;

* the parties to the transaction are well aware of the subject of the transaction and act in their own interests;

* the object of assessment is presented on the open market in the form of a public offer;

* the price of the transaction is a reasonable remuneration for the object of evaluation and there was no coercion to make a transaction in relation to the parties to the transaction from either side;

* payment for the object of assessment is expressed in monetary terms.

This type of value is applied to all issues related to federal and local taxes. It is the market value that is determined when evaluating for the purposes of buying and selling an enterprise or part of its assets. The market value is objective, independent of the desire of individual participants in the real estate market and reflects the real economic conditions emerging in this market.

2 . Types of value of the appraisal object other than market value:

* value of an appraisal object with a limited market - the value of an appraisal object, the sale of which on the open market is impossible or requires additional costs compared to the costs necessary for the sale of goods freely circulating on the market;

* the cost of replacing the object of assessment - the amount of costs for the creation of an object similar to the object of assessment, in market prices that exist on the date of the assessment, taking into account the depreciation of the object of assessment. This type of value is widely used in the insurance industry;

* cost of reproduction of the appraised object - the sum of costs in market prices existing on the date of the appraisal, for the creation of an object identical to the appraised object, using identical materials and technologies, taking into account the depreciation of the appraised object. In this case, the same obsolescence of the object and the same shortcomings in architectural solutions that the object being valued had. This does not take into account only physical wear;

* the value of the appraisal object in the current use - the cost of the appraisal object, determined based on the existing conditions and purposes of its use;

* investment value of the appraisal object - the value of the appraisal object, determined on the basis of its profitability for a particular person with given investment goals. The investment value is determined based on individual investment requirements. A typical investor, investing in a business, seeks to receive, along with a return on invested capital, also a return on invested capital. Therefore, the calculation of the investment value is made on the basis of the income expected by this investor and the specific rate of their capitalization. Investment value is the starting point for negotiations on sales transactions, acquisitions, mergers, etc.;

* the value of the appraisal object for taxation purposes - the cost of the appraisal object, determined for the calculation of the tax base and calculated in accordance with the provisions of regulatory legal acts (including the inventory value);

* salvage value of the appraisal - the value of the appraisal object in case the appraisal object must be alienated within a period less than the usual exposition period for similar objects. Distinguish between orderly and forced liquidation. An orderly liquidation is carried out for a period of time sufficient to obtain a maximum price. Forced liquidation means the most urgent possible sale of assets. Naturally, it gives a lower cost. In case of any liquidation, the costs of liquidation are taken into account (commissions for sale agents, expenses for maintaining the administration of the liquidated enterprise, etc.). Western practice shows that the liquidation value of the firm as a whole is less than the amount of proceeds from the sale of its assets;

* Disposal value of the appraised object - the value of the appraised object, equal to the market value of the materials it includes, taking into account the costs of disposing of the appraised object;

* special value of the appraisal object - the value for the determination of which the appraisal agreement or regulatory legal act stipulates conditions that are not included in the concept of market or other value specified in these appraisal standards.

1.2 Three main approaches to enterprise valuation

Assessment approaches - a brief description.

The choice of valuation method largely depends on the financial condition of the enterprise at the moment and what are its prospects. Depending on the state and prospects of business development, the calculation of the company's value can be based on the following approaches:

costly an approach

income approach

Comparative approach

costly The valuation approach considers the value of the enterprise in terms of the costs incurred. The value of the enterprise is recognized as equal to the value of the assets of the enterprise remaining after the repayment of all liabilities.

Profitable the approach is considered the most appropriate from the point of view of investment motives, since the value of an enterprise is understood not as the cost of a set of assets (buildings, structures, machinery, equipment, intangible assets, etc.), but an assessment of the flow of future income. The income approach assumes that the potential investor will not pay for this business an amount greater than the present value of future earnings from that business. Moreover, there are two models for constructing a stream of future income: cash flow for equity, and for all invested capital (takes into account both equity and borrowed capital).

Comparative The approach assumes that the value of an enterprise is determined by how much it can be sold for in the presence of a sufficiently formed market. In other words, the most probable value of the valued enterprise may be the real sale price of a similar enterprise, fixed by the market.

When conducting an appraisal, the appraiser is obliged to use (or justify the refusal to use) all three valuation approaches, but he has the right to independently determine specific valuation methods within each of the valuation approaches.

Coordination of the results and final conclusion on the market value of the appraisal object.

Depending on the specific situation, the results of each of the three approaches may be more or less different from each other. The choice of the final cost estimate depends on the purpose of the estimate, the information available and the degree of its reliability.

The classification of assessment methods is shown in Fig. 1

Cost approach.

The cost approach in business valuation considers the value of the enterprise in terms of costs incurred. To do this, the fair market value of each asset is first assessed, then the current value of the liabilities is determined, and finally, the current value of all its liabilities is subtracted from the fair market value of the total assets of the enterprise, the result shows the estimated value of the enterprise's own capital.

This approach is represented by two main methods:

cost method net assets ;

residual value method.

The calculation by the liquidation value method is used in case of a forced sale of an enterprise, therefore, for this work, only the net asset value method was calculated, which includes several stages:

The property of the enterprise is assessed at a reasonable market value;

Intangible assets are identified and evaluated;

The market value of financial investments, both long-term and short-term, is determined;

Inventories are converted to present value;

Estimated accounts receivable;

Deferred expenses are estimated;

The company's liabilities are converted to present value.

The cost of equity capital is determined by subtracting from the fair market value of the sum of assets the present value of all liabilities.

The net asset value method is applied when a company has significant tangible assets and is expected to be a going concern.

The source of initial data for the assessment is the financial statements of the enterprise, including: balance sheet, profit and loss statement, cash flow statement, applications and transcripts. Moreover, inflationary adjustment of the data should be carried out first.

Distinguish between the method of adjusted net assets and unadjusted net assets. In the first case, a complete adjustment of the balance sheet items is carried out, which means that the reasonable market value of each balance sheet asset is determined separately. The results of calculations by this method are more reliable than by the second one, when, due to the lack of sufficient information, balance sheet items are not adjusted.

The procedure for calculating the value of net assets according to financial statements is defined in the Procedure for estimating the value of net assets of joint-stock companies, approved by order of the Ministry of Finance of the Russian Federation dated 5.08.96. No. 71 and the Federal Commission for the Securities Market dated 5.08.96. No. 149.

Net assets is a value determined by subtracting from the amount of assets of a joint-stock company accepted for calculation, the amount of its liabilities accepted for calculation.

The assets involved in the calculation are the monetary and non-monetary property of the enterprise, which includes the following items at their book value:

non-current assets reflected in the first section of the balance sheet, with the exception of the book value of the company's own shares repurchased from shareholders. At the same time, when calculating the value of net assets, intangible assets are taken into account in the first section of the balance sheet and meet the following requirements:

directly used by the company in its core business and generating income (rights to use land plots, natural resources, patents, licenses, know-how, software products, monopoly rights and privileges, including licenses for certain types of activities, organizational costs, trademarks, trademarks, etc.);

having documentary evidence of the costs associated with their acquisition (creation);

the company's right to own these intangible rights must be confirmed by a document (patent, license, act, contract, etc.) issued in accordance with the legislation of the Russian Federation;

under the article other non-current assets, the debt of the joint-stock company for the property sold to it is taken into account;

inventory and costs cash, settlements and other assets shown in the second section of the balance sheet, except for the debt of participants (founders) on their contributions to the authorized capital and the book value of their own shares redeemed from shareholders.

If the joint-stock company has estimated reserves for doubtful debts and for depreciation of securities at the end of the year, the indicators of the items in connection with which they are created are taken into account (shown in the Calculation) with a corresponding decrease in their book value by the value of these reserves.

The liabilities involved in the calculation are the obligations of the joint-stock company, which include the following items:

earmarked funding and revenues;

long-term liabilities to banks and other legal entities and individuals;

short-term liabilities to banks and other legal entities and individuals; settlements and other liabilities, except for the amounts reflected under the items "Deferred income", "Consumption funds" and "Reserves for future expenses and payments".

When calculating using the net assets method, the prospects for the development of the company are not taken into account, which in this case significantly distorts the real value of the company.

The second method - the method of liquidation value - is used for enterprises that are in a state of bankruptcy or if the value of the company during liquidation will be higher than when continuing. Using this method the appraiser determines the gross proceeds from the liquidation of the assets of the enterprise, then reduces it by the amount of direct costs associated with the liquidation of the enterprise, as well as by the amount of all liabilities of the enterprise.

Comparative approach.

Comparative approach is based on the principle of a well-functioning market in which investors buy and sell assets of a similar type, while making independent individual decisions. Data on similar transactions are compared with the estimated ones. The advantages and disadvantages of the assets being evaluated in comparison with the selected analogues are taken into account by introducing appropriate amendments.

2. Practical part

EUM №32

Option number 21

2.1 Income approach to property valuation

The income approach is a procedure for assessing the value of real estate based on the fact that the value of real estate is related to the present value of the future net income that the property will bring.

Initial investment 31,000 rubles.

Probability e 1 = 0.1; e 2 \u003d 0.5

Rate of return, % 9

Inflation rate, % e 1 = 3; e 2 =6; e 3 \u003d 8

Calculation of cash flow taking into account different probabilities of events

	Event Probability	income stream,

Event e 1 (15 500)

Event e 2 (10 850)

Event e 3 (4 650)

Fig 1. Tree cash flows

However, in conditions of uncertainty, in addition to changes in the amount of cash flows from investments in real estate, it is necessary to take into account the different value of money over time.

Accounting for the different time value of money is done by determining the present value of future benefits using the expression:

PV = ? C i / (1+ r) n ,

Yield rate 14%

PV \u003d? C i / (1 + r) n \u003d 1 / (1 + 0.09) 1 \u003d 0.9174

Calculation of the present value of the cash flow, taking into account the probability of events.

Expected cash flows, rub.	Present value ratio	Current value of cash flow, rub.

Under conditions of uncertainty, a risk adjustment factor must also be taken into account. The latter represents the price of a monetary unit in a certain period, but in different macroeconomic conditions.

Under the optimistic scenario, the inflation rate will be 3% per annum, which determines the current purchasing power of the ruble in a year at 0.9709

PV = 1/ (1+0, 03 ) = 0, 9709

Under the average scenario, the inflation rate will be 6% per annum, which determines the current purchasing power of the ruble in a year at 0.9434

PV = 1/ (1+0, 06 ) = 0, 9434

Under the pessimistic scenario, the inflation rate will be 8% per annum, which determines the current purchasing power of the ruble in a year at 0.9259

PV = 1/ (1+0,08 ) = 0,9 259

Calculation of the present value of the cash flow, taking into account the adjustment for risk

	Current value of cash flow, rub.	Risk adjustment factor	Expected current value, rub.



Total expected present value

Thus, the expected present value under conditions of uncertainty should be calculated taking into account three factors: the probability of the event occurring, the time value of money, and the risk adjustment factor. Multiplying the three factors will give the discount factor for a certain present value of future cash flows:

Event e 1 0.1*0.9174*0.9709=0.09

Event e 2 0.5*0.9174*0.9434=0.43

Event e 3 0.4*0.9174*0.9259=0.34

Multiplying the cash flows characteristic of each of the events by the appropriate discount factor, we get:

The total value of the property under appraisal will be

1395+4666+1581=7642

2.2 Cost approach to property valuation

n=22 G=2

The cost approach is based on the study of the investor's ability to purchase real estate.

The general formula for the cost approach is:

C costs= C memory + C NS - I = C memory+ sun And

C costs= 222 + 179757 = 179979

With memory= 100 G+5 n= 222

C units = 20 G +3 n= 106

Kclass = 1+ (n+ G) /10= 2,5

K 1 ter = 1+ (n+5 G) /10= 3,3

K 2 = 16 + (2 n+ G) /10= 4,7

K 1 = 1,16

V=100

PVA=V* C units* Kclass * K 1 * K 1 ter* K 2

PVA \u003d 100 * 106 * 2.5 * 3.3 * 1.16 * 4.7 \u003d 476 777

Calculation of the amount of physical depreciation of the property

Elements of the property	Share in total cost, % (I i)	Actual physical wear of the element, % (Ф to i)	The share of the physical wear of the element in the total physical wear of the building, %
Foundations
Walls and partitions
Overlappings


Windows and doors
Interior finishing
Other works
Sanitary and electrical devices
Total (F i)

FN-value functional wear - 35%

VI-value of external wear-20%

VS and \u003d PVA (1-F and / 100) (1-FN / 100) (1-VI / 100)

BC and \u003d 476777 * 0.739 * 0.650 * 0.8 \u003d 179,757

(building cost including depreciation)

Market or comparative approach to real estate valuation

Comparison elements		SALE OF ANALOGUES

1. Location
2. Condition of the apartment	not bad
3. Distance from stop, min. on foot
4. Bathroom	separated
5. Transaction price in c.u. e. / m 2
Location Adjustment
Adjustment for the condition of the apartment
Final Adjustment
Adjusted cost of analogues

Conclusion

The first part of the test contains such a topical topic as the valuation of the enterprise.

Under land plot is understood as a part of the earth's territory, which is equipped and ready for use for various purposes.

Improvements made to create the site:

external: arrangement of streets, sidewalks, drainage and engineering networks;

internal: planning, landscaping, asphalting, installation of outlets for connecting engineering networks, communication communications, etc.

The second part of the test contains practical solutions on the following topics:

Income Approach to Real Estate Valuation

Cost Approach to Real Estate Valuation

Market or comparative approach to real estate valuation.

Bibliography

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3. Grabovyi P.G., Petrova S.N., Romanova G.K. etc. Risks in modern business. M.: ALANSB, 1994.

4. Kalacheva S.A. Real estate transactions. M.: PRIOR, 1997.

5. Melkumov Ya.S. Economic evaluation of investments. M.: IKTs DIS, 1997.

6. Fundamentals of business in the real estate market. St. Petersburg: Educational and publishing association DEAN + ADIL-M, 1997.

7. Prorvich V.A. Fundamentals of economic evaluation of urban land. M.: Delo, 1998.

8. Smirnov A.L. Organization of financing of investment projects. Moscow: AO Consultbanker, 1993.

9. Tarasevich E.I. Property valuation. SPb.: SPbGTU, 1999.

10. Theory and methods of real estate appraisal. St. Petersburg: Publishing house of St. Petersburg GUEF, t1998.

11. Shcherbakova Yu.V. Real estate economics. Rostov-on-Don: PHOENIX, 2002.

12. Economics and property management. Textbook for universities / Ed. Prof. P.G. Grabovsky. Smolensk: Publishing house "Smolin plus", M.: Publishing house "ASV", 1999.

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Parameter name	Meaning
Article subject:	Cost types
Rubric (thematic category)	Production

Given the dependence on the purpose of the assessment, the number and selection of factors taken into account, the appraiser calculates different kinds cost.

Price- this is the monetary equivalent that the buyer is willing to exchange for any item or object. Cost differs from price and costs.

1. According to the degree of marketability Distinguish between market value and standard value.

Under market value in international standards valuation is commonly understood as the estimated value for which the property is expected to change hands on the valuation date as a result of a commercial transaction between a voluntary buyer and a voluntary seller after adequate marketing; it is assumed that each party acted competently, prudently and without coercion. Market value is the most likely price in a transaction between a typical buyer and seller.

In some cases, the market value may be expressed as a negative value. For example, this should be the case in the case of valuation of obsolete properties, the cost of demolition of which exceeds the value of the land, or in the case of valuation of environmentally friendly properties.

Normally calculated cost- this is the value of the property, calculated on the basis of methods and standards approved by the relevant authorities (Goskomimushchestvo, Goskomstat, Roskomzem). In this case, uniform scales of standards are applied. As a rule, the standard calculated value does not coincide with the value of the market value, however, the standards are periodically updated in accordance with the base market value.

2. Evaluation terms distinguish between market, investment, insurance, taxable, salvage value.

When evaluating a property as an object for sale on the open market, it is used market value.

When justifying investment projects, the investment cost is calculated. Investment cost- the value of property for a particular investor for certain investment purposes.

Unlike market value, which is determined by the behavior of a typical buyer and seller, investment value depends on the individual investment requirements of a particular investor.

There are a number of reasons why investment value may differ from market value. The main reasons are differences: in the assessment of future profitability; in ideas about the degree of risk; in a tax situation; compatible with other properties owned or controlled them.

Insurance value - the value of the property as determined by the terms of the insurance contract or policy.

Taxable value- the cost calculated on the basis of the definitions contained in the relevant normative documents relating to property taxation.

Utilization (scrap) cost- the value of the property (excluding land), considered as the total value of the materials contained in it, without additional repairs.

3. Taking into account the dependence on the nature of the analogue distinguish between the cost of reproduction and the cost of replacement.

cost of reproduction- this is the value of the property, created according to the same layout and from the same materials as the one being assessed, but at current prices.

replacement cost is the cost of a close analogue of the property being valued.

Reproduction cost and replacement cost are widely used in the insurance industry.

4. In accounting Distinguish between book value, residual and replacement value.

Book value- the cost of building or acquiring a property. The balance sheet value is original and replacement. The initial cost is reflected in the accounting documents at the time of commissioning. replacement cost- the cost of reproduction of previously created fixed assets in modern conditions; determined in the process of revaluation of basic funds. Residual value - ϶ᴛᴏ initial (replacement) minus depreciation.

5. Given the dependence on the development prospects of the enterprise Distinguish between the value of the existing enterprise and the liquidation value.

The value of a going concern- this is the value of the formed enterprise as a whole, and not any of its constituent parts. The value of individual assets or components of an ongoing enterprise is determined on the basis of their contribution to this business and is perceived as their use value for a particular enterprise and its owner.

The assessment of an existing enterprise suggests that the business has favorable development prospects, in this regard, one can expect the preservation of the enterprise as a system, and the value of the whole is usually always greater than simple sum the cost of individual items.

Liquidation value, or forced sale value, the amount of money that would realistically have to be received from the sale of a property in a period too short for adequate marketing. When determining it, it is extremely important to take into account all the costs associated with the liquidation of the enterprise, such as commissions, administrative costs of maintaining the operation of the enterprise until its liquidation, expenses for legal and accounting services. The difference between the proceeds that can be obtained from the sale of the company's assets on the market and the cost of liquidation gives the liquidation value of the enterprise.

When assessing the value of an enterprise, there is also such a thing as effective cost. Effective value - the value of assets, equal to the larger of the two values - the use value of assets for a given owner and the cost of their implementation.

Any kind of value calculated by an appraiser is not a historical fact, but an appraisal of a particular property in this moment according to the chosen purpose.

The economic concept of value expresses a real view of the benefit that the owner has. this object or the buyer at the time of evaluation. The basis of the value of any property, incl. business, is its usefulness.

In addition to the concept of ʼʼcostʼʼ, the concepts of ʼʼpriceʼʼ and ʼʼcostsʼʼ (cost price) are used in the theory and practice of valuation.

Price is an indicator of the amount of money required, expected or paid for a certain product or service. It is a historical fact, ᴛ.ᴇ. refers to a particular moment and place. Given the dependence on financial capabilities, motives or special specific interests of the buyer and seller, the price may deviate from the cost.

Cost price is the amount of money required to create or produce a good or service. The cost price will include the totality of costs, costs or expenses. Upon completion of the process of creation or the act of buying and selling, the cost price becomes a historical fact. The price paid by the buyer for the good and service becomes the cost of acquisition for him.

The cost price affects the market value, but it is definitely not defines.

The skillful combination and use of all these concepts make it possible to conduct a qualitative assessment of property objects. Along with the fundamental concepts underlying the transaction, there are also common principles and generally accepted methods of property valuation.

Table. Relationship between the purpose of the valuation and the value elements used for the valuation

Types of value - concept and types. Classification and features of the category "Types of value" 2017, 2018.

- List the main types of value determined in the evaluation of real estate (according to FSO-1.2).

Types of real estate and features of its classification Expand the concept and identify the features of real estate, tell us about the classification of real estate. Real estate includes land and objects that were created on it: buildings, structures, ... .

- Main types of real estate value

Factors influencing the value of real estate Real estate valuation There are four factors that affect the value of real estate. 1. Demand - the amount of a given product or service that finds solvent buyers on the market .... .

The market value of the appraisal object (exchange value) is the most probable price at which this appraisal object can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and on ... .

- Types of value determined in the evaluation of real estate.

Features of real estate as an object of evaluation. Objects and subjects of assessment. Real estate is a specific commodity circulating in the investment sector. The most significant differences of this product include its economic and physical ... .

- Types of value determined by the benefits from the use of the property

Types of value based on accounting for past costs Replacement cost (costs for full restoration) - costs in current prices that must be incurred when recreating an exact duplicate of this property (using the same ... .

- Evaluation and accounting of fixed assets. Types of cost of fixed assets: initial, replacement, residual, liquidation and average annual.

Depreciable initial cost (Fperv.) - the sum of the costs of construction, purchase, transportation in the prices of the year when they were put into operation. At this cost, fixed production assets are listed on the balance sheet of the enterprise (first year). F first \u003d C pok ... .

- Regulatory types of value of the appraised object

Economic types value of the appraisal object Principles for formalizing the results of the appraisal Principles reflecting the point of view of the market Principles reflecting the relationship of components ... .

- Types of value of fixed assets

Definition, characteristics and classification of fixed assets Fixed assets and investment activities of the enterprise Fixed assets are labor tools that are reused in manufacturing process, which do not change at the same time ... .

Estimating the value of an enterprise (business) is the calculation and justification of the value of an enterprise on a certain date. Estimating the value of a business, like any other object of property, is a purposeful and orderly process of determining the value of an object in monetary terms, taking into account the factors influencing it at a particular moment in time in a particular market. A somewhat cumbersome, at first glance, definition of the essence of valuation reveals, however, the main (essential) features this process.

Firstly, the valuation of an enterprise (business) is a process, that is, to obtain a result, an expert appraiser must perform a number of operations, the sequence and content of which depend on the purpose of the valuation, the characteristics of the object and the methods chosen. At the same time, it is possible to single out the stages of assessment common to all cases, for example, determining the purpose of the assessment, choosing the type of value to be calculated, collecting and processing the necessary information, substantiating cost estimation methods; calculation of the value of the object, making amendments; derivation of the final value, verification and approval of the results. None of the stages can be skipped or "rearranged" to another place. Such "liberties" will lead to a distortion of the final result. This implies the second essential characteristic of the assessment, namely, that this process is ordered, that is, all actions are performed in a certain sequence.

Third, valuation is a purposeful process. An expert appraiser in his work is always guided by a specific goal. Naturally, he must calculate the value of the object. But what value to determine depends on the purpose of the assessment, as well as on the characteristics of the object being assessed. For example, if the calculation of the value of a business is carried out in order to conclude a sale and purchase transaction, then the market value is calculated, but if the purpose of the assessment is to determine the value of the business in the event of its liquidation, then the liquidation value is calculated.

The fourth feature of the valuation process is that the appraiser always defines value in terms of units of money, hence all values must be quantified, no matter how easy they are to accurately measure and monetize.

The fifth essential feature of valuation is its market character. This means that the appraiser is not limited to taking into account only the costs of creating or acquiring the property being valued, its specifications, location, income generated by it, composition and structure of assets and liabilities, etc. of the object being valued. It necessarily takes into account a combination of market factors: market conditions, the level and model of competition, the market reputation of the business being valued, its macro and microeconomic environment, the risks associated with obtaining income from the object of evaluation, the average market level of profitability, prices for similar objects, the current situation in the industry and in the economy as a whole.

The main factors are time and risk. The market economy is dynamic, hence the time - the most important factor, affecting all market processes, including the valuation of the enterprise (business). The time of receipt of income or until receipt of income is measured by intervals, periods. The interval, or period, can be equal to a day, a week, a month, a quarter, a half year, or a year. The length of the forecast period affects the value of the market value, primarily because it is taken into account when discounting. The market value of a business changes over time under the influence of numerous factors, so it is determined only as of a specific point in time. In a few months it may be different. Consequently, constant evaluation and revaluation of property objects is necessary in a market economy.

Another significant factor in market value is risk. Risk refers to volatility and uncertainty associated with market conditions, macroeconomic processes, etc. In other words, risk is the likelihood that the returns that will be received from investments in the business being valued will be more or less than predicted. When evaluating, it is important to remember that there are different types of risk and that no investment in a market economy is absolutely risk-free.

The result of the assessment is the calculated value of the market value or its modification. Market value is “the most probable price at which this object of appraisal can be alienated on the open market, when the parties to the transaction act reasonably, having all the necessary information, any extraordinary circumstances are not reflected in the value of the transaction price ...” (Federal law on appraisal activities in the Russian Federation, Chapter 1, p.3).

The market value is determined necessarily in monetary terms, for example, in rubles or dollars. At the same time, it is advisable to carry out the calculations necessary for calculating the cost immediately in the selected currency, since this will allow more accurate calculations and avoid or significantly reduce the error that occurs when translating the final result from one currency to another.

When determining the value, the appraiser tries to take into account the fullness of the influence of the main factors, which include the income generated by the property being valued, the risks associated with obtaining this income, the average market level of profitability for similar objects, character traits the object being assessed, including the composition and structure of assets and liabilities (or constituent elements), market conditions, the current situation in the industry and in the economy as a whole.

A distinctive feature of market valuation and at the same time mandatory requirement is its binding to a specific date.

Cost types

Market value. The most probable price at which the object of appraisal can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction price.

Market value is determined if:

when determining the value of the placed shares of the company, acquired by the company by decision general meeting shareholders or by decision of the board of directors ( supervisory board) society;
the object of assessment acts as an object of collateral, including in case of a mortgage;
when making non-monetary contributions to the authorized (share) capital, when determining the value of property received free of charge;
when deciding on the initial sale price of property in bankruptcy proceedings.

Investment value. The value of a property to a particular investor or class of investors for established investment purposes. This subjective concept relates a specific property to a specific investor, a group of investors or an organization that has certain goals and / or criteria in relation to investment. The investment value of the valuation object may be higher or lower than the market value of this valuation object.

The investment value is determined in the following cases:

· if it is supposed to make a deal with the object of assessment in the presence of a single counterparty;
if the object of assessment is considered as a contribution to the investment project;
· when substantiating or analyzing investment projects;
in the implementation of measures for the reorganization of the enterprise.

It, in contrast to the market, is the value of the property from the point of view of a specific real or potential owner (investor), determined by his individual investment requirements, inclinations and preferences, and therefore, is a manifestation of value in use.

The liquidation value is determined when the property of a bankrupt enterprise is sold at an open auction, the property is seized as a result of a trial, or at customs. The liquidation value may be determined in addition to the market value when lending secured by property.

Recycling cost. The most probable price at which the object of appraisal can be alienated as a set of elements and materials contained in it if it is impossible to continue its use without additional repair and improvement.

The utilization value is determined at the end of the useful life of the appraised object, or in the presence of significant damage, if the further use of the appraised object for its intended purpose is impossible.

Replacement cost (cost of reproduction and replacement) - the sum of costs in market prices that exist on the date of the assessment, to create an object identical to the object of assessment, using identical materials and technologies, or to create an object similar to the object of assessment, using existing ones on the date evaluation of materials and technologies.

The replacement cost is determined by:

when calculating the tax base for income tax, property tax;
· for purposes tax accounting when making a fixed asset as a contribution to the authorized capital;
when revaluing fixed assets for the purposes accounting;
within the framework of the cost approach in property valuation.

The replacement cost can be determined when insuring property.

Special cost. Value additional to market value that may arise from the physical, functional or economic connection of a property with some other property. A special value is an additional cost that may exist more for a buyer with a special interest than for the market as a whole. In particular, a special cost can be calculated in order to determine the synergistic effect in the reorganization of the enterprise.

Chapter 1

CONCEPT, OBJECTIVES AND PRINCIPLES OF ASSESSING THE COST OF AN ENTERPRISE (BUSINESS)

After studying this chapter, you will learn the essence of valuation, understand the need and possibility of carrying out valuation work in market economy, get acquainted with the activities of foreign appraisers, understand what methodological and practical problems arise in the evaluation of various property objects. The material in this chapter will help you correctly identify the objects and subjects of valuation, identify a set of factors that affect the value of a business, and determine methods for their analysis.

After carefully reading this chapter, you will understand what is the unity and opposite of market value and market price, why when evaluating different objects of value for different purposes, it is necessary and possible to use different types of value, and how these types of value differ from each other.

Mastering the material of the chapter will allow you to understand and learn how to correctly apply the principles of evaluation.

You will also learn the rights and obligations of an appraiser in our country, the requirements for the quality of appraisal work and the degree of responsibility of an appraiser.

Starting to study the first chapter, pay attention to the close methodological relationship between valuation as an independent area of science and practice with other areas of scientific and practical activity, primarily with economic theory and law. Please also note that the textbook is about evaluation Russian business(enterprises), therefore, in this chapter, both the general theoretical, conceptual provisions of valuation are presented, and the features of valuation activities in Russia are substantiated. This applies primarily to the legal, organizational objects of assessment, to the problems that our expert appraisers face, to those specific techniques, methods, information support that are determined by the level of development and characteristics of the modern Russian market.

1.1. The essence, necessity and organization of valuation activities in a market economy

In a market economy, when all transactions are made "at the peril and risk" of their participants, both the seller and the buyer (and all transactions, in the end, can be reduced to buying and selling) want to know in advance (before the actual completion of the transaction) what will be transaction price.

The main component of the market price is the value of the object that is the subject of the transaction. The market price is a fait accompli, the result of a transaction that has already taken place. It always exists in the past. This is the monetary value of the result of an agreement between the seller and the buyer. The seller's price and the buyer's price are the monetary expression of value. It is determined independently by each of the participants in the transaction, but the final value, called the market price, appears as a result of the coordination of these prices.

You can, of course, try to predict, predict given result. But these kinds of predictions are different. low level probability, since it is impossible to take into account the totality of factors influencing the transaction price.

The use of a rigid system of abstractions and limitations in calculations will move the result so far from reality that the whole procedure will lose its meaning.

Another thing is the seller's price and the buyer's price. The customer provides the appraiser with the necessary information about the object, the expert also takes into account external information, including the state of the market, and calculates a value that expresses in money equivalent the cost of creating an object, the income it generates, the risks associated with obtaining this income, and other factors. The resulting value may coincide with the future transaction price, or may differ from it. Moreover, when fulfilling the order of the buyer and the seller, the appraiser is likely to receive different values - due to the different information base and customer expectations. However, this discrepancy should not be significant. Consequently, the value determined by the appraiser is not the market price and not the value as a property of the goods. It occupies an intermediate position between them. This value is usually called the market value, and it is this value that the appraiser most often tries to determine.

The essence and concept of valuation activities

Estimating the value of an enterprise (business) is the calculation and justification of the value of an enterprise on a certain date. Estimating the value of a business, like any other object of property, is a purposeful and orderly process of determining the value of an object in monetary terms, taking into account the factors influencing it at a particular moment in time in a particular market. Somewhat cumbersome, at first glance, the definition of the essence of valuation reveals, however, the main (essential) features of this process. Let's take a look at each of them.

So, firstly, the valuation of an enterprise (business) is a process, that is, to obtain a result, an expert appraiser must perform a number of operations, the sequence and content of which depend on the purpose of the valuation, the characteristics of the object and the methods chosen. At the same time, it is possible to single out the stages of assessment common to all cases, for example, determining the purpose of the assessment, choosing the type of value to be calculated, collecting and processing the necessary information, substantiating cost estimation methods; calculation of the value of the object, making amendments; derivation of the final value, verification and approval of the results. None of the stages can be skipped or "rearranged" to another place. Such "liberties" will lead to a distortion of the final result. This implies the second essential characteristic of the assessment, namely, that this process is ordered, that is, all actions are performed in a certain sequence.

Thirdly, valuation is a purposeful process. An expert appraiser in his work is always guided by a specific goal. Naturally, he must calculate the value of the object. But what value to determine depends on the purpose of the assessment, as well as on the characteristics of the object being assessed. For example, if the calculation of the value of a business is carried out in order to conclude a sale and purchase transaction, then the market value is calculated, but if the purpose of the assessment is to determine the value of the business in the event of its liquidation, then the liquidation value is calculated.

The fifth essential feature of valuation is its market character. This means that the appraiser is not limited to taking into account only the costs of creating or acquiring the appraised object, its technical characteristics, location, income generated by it, the composition and structure of assets and liabilities, etc. of the appraised object. It necessarily takes into account a combination of market factors: market conditions, the level and model of competition, the market reputation of the business being valued, its macro and microeconomic environment, the risks associated with obtaining income from the object of evaluation, the average market level of profitability, prices for similar objects, the current situation in the industry and in the economy as a whole.

The main factors are time and risk. The market economy is dynamic, hence time is the most important factor influencing all market processes, including the valuation of an enterprise (business). The time of receipt of income or until receipt of income is measured by intervals, periods. The interval, or period, can be equal to a day, a week, a month, a quarter, a half year, or a year. The length of the forecast period affects the value of the market value, primarily because it is taken into account when discounting. The market value of a business changes over time under the influence of numerous factors, so it is determined only as of a specific point in time. In a few months it may be different. Consequently, constant evaluation and revaluation of property objects is necessary in a market economy.

The result of the assessment is the calculated value of the market value or its modification. Market value is “the most probable price at which this object of appraisal can be alienated on the open market, when the parties to the transaction act reasonably, having all the necessary information, any extraordinary circumstances are not reflected in the value of the transaction price ...” (Federal Law on Appraisal Activities in the Russian Federation, Chapter 1, p.3).

When determining the value, the appraiser tries to take into account the full impact of the main factors, which include the income generated by the property being valued, the risks associated with obtaining this income, the average market level of profitability for similar properties, the characteristic features of the property being valued, including the composition and structure of assets and liabilities ( or constituent elements), market conditions, the current situation in the industry and in the economy as a whole.

A distinctive feature of the market valuation and at the same time a mandatory requirement is its binding to a specific date.

The calculation of market value in the modern economy is necessary for the following reasons:

· assessment (or determination) of the market value allows the seller or buyer to "put up" the goods at the most realistic price, since the market value takes into account not only and not so much individual costs and expectations, but the situation on the market as a whole, market expectations, general economic development trends, assessment this object from the market;

· knowledge of the value of the market value allows the owner of the object to optimize the production process, if necessary, taking a number of measures aimed at increasing the market value of the object, at maintaining the gap between the individual (internal) and market value in case the latter is exceeded;

· periodic market valuation of the value allows to increase the efficiency of management and, consequently, to prevent bankruptcy and ruin;

· for the buyer-investor, the cost estimate helps to make the right effective investment decision;

· of course, the customer can independently do the work of an appraiser, but he needs special, professional knowledge and skills for this. Not everyone has them, and not everyone wants to get such knowledge. Therefore, in the modern economy, valuation is carried out by specially trained professionals - expert appraisers. Professional valuation allows you to get reasonable results;

· if each participant in the proposed transaction tried to independently evaluate this or that object, then his expenses would be quite significant, since it would be necessary to form a certain information base, buy certain programs, etc., which would be used once or twice and could not pay for themselves. For a professional appraiser, everything is “on stream”, his transaction costs are significantly lower;

· ordering an appraisal from a professional, the investor concludes an agreement with him, which establishes the rights and obligations of the parties. The appraiser bears a certain responsibility for the quality of the work performed, therefore, the risk of an incorrect assessment "falls on the shoulders" of the expert, and not the customer;

· valuation in the macroeconomic aspect is one of the levers of management and regulation of the economy by the state, the valuation is of particular importance in the management of state and municipal property.

Thus, valuation makes it possible to solve many pressing problems in a market economy. Being an important tool of a market economy, valuation must be organized in a certain way. The quality of the work of appraisers, the effectiveness and adequacy of the decisions made with their help depend on this.

In almost all countries where valuation is carried out, it is carried out by independent valuation professionals who nevertheless adhere to established valuation standards in their work.

In our country, the valuation of various objects, including businesses, is carried out on the basis of the law on valuation activities and standards by independent licensed appraisers who have undergone special professional training.

1.2. Objects and subjects of valuation

The evaluation process presupposes the presence of the object being evaluated and the subject being evaluated.

The subject of appraisal activities are, on the one hand, professional appraisers with special knowledge and practical skills, on the other hand, consumers of their services, customers.

The role of professional appraisers is played by legal entities (appraisal firms, appraisal departments of audit and other companies) and individuals ( individual entrepreneurs). In any case, their activities are regulated by the Federal Law on Valuation Activities in the Russian Federation.

Professional appraisers work on orders from government agencies, enterprises, banks, investment and insurance institutions, as well as citizens.

In their activities, they are guided by legal, professional and ethical standards. Legal norms are enshrined in the Federal Law "On Appraisal Activities in the Russian Federation" dated July 29, 1998 No. 135 FZ, as well as in the "Appraisal Standards Mandatory for Application by Subjects of Appraisal Activities, Approved by the Decree of the Government of the Russian Federation" and in the "Regulation on Licensing ". The Russian law "On appraisal activities" defines the rights and obligations of the appraiser, the procedure for insuring his civil liability.

The Russian appraiser has the right:

· independently choose and apply assessment methods in accordance with the standards;

· in the event of a mandatory assessment, require the customer to provide access in full to the documentation necessary for the implementation of this assessment;

· get clarification and additional information required to carry out this assessment;

· request in writing or orally from third parties the information necessary for the assessment, with the exception of information that is a state or commercial secret; if the refusal to provide information significantly affects the reliability of the assessment, the appraiser shall indicate this in the report;

· involve, as necessary, on a contractual basis, other appraisers or other specialists to participate in the assessment;

· refuse to evaluate the object if the customer violated the terms of the contract, did not provide the working conditions corresponding to the contract.

The responsibilities of the appraiser are:

· compliance with the requirements of the law on valuation activities and the regulatory legal acts adopted on its basis;

· refusal to evaluate in the event of circumstances preventing an objective assessment;

· ensuring the safety of documents received during the evaluation work;

· providing the customer with information on the requirements of the legislation of the Russian Federation on valuation activities, on the charter and code of ethics of the relevant self-regulatory organization (professional public association of appraisers or non-profit organization of appraisers), in which the appraiser refers to membership in his report;

· providing, at the request of the customer, documents on education confirming the acquisition of professional knowledge in the field of valuation;

· non-disclosure of confidential information received from the customer in the course of the assessment, with the exception of cases provided for by the legislation of the Russian Federation;

· storage of copies of the prepared reports for three years;

· providing copies of stored reports or information from them to law enforcement agencies or local governments at their legal request.

In Art. 16 of the Federal Law on Appraisal Activities in the Russian Federation notes that an appraisal cannot be carried out by an appraiser if he is a founder, owner, shareholder or official legal entity or customer or individual, having a property interest in the object of assessment, or is in close relationship or property with the indicated persons.

Evaluation is also not allowed if:

· in relation to the appraisal object, the appraiser has property or liability rights outside the contract;

· the appraiser is the founder, owner, shareholder, creditor, insurer of a legal entity, or the legal entity is the founder, shareholder, creditor, insurer of an appraisal firm.

Intervention of the customer or other interested parties in the activities of the appraiser is not allowed if this may adversely affect the reliability of the result of the appraisal of the appraisal object, including limiting the range of issues to be clarified or determined during the appraisal of the appraisal object.

The amount of payment for the appraiser's services for the appraisal of the appraisal object cannot depend on the final value of the appraisal object's value.

In addition, in Art. 17 substantiates the need to insure the civil liability of appraisers.

Appraisers' civil liability insurance is a condition that ensures the protection of the rights of consumers of appraisers' services and is carried out in accordance with the legislation of the Russian Federation.

An insured event is the infliction of losses to third parties in connection with the implementation by the appraiser of his activities, established by the effective court decision, arbitral tribunal or arbitral tribunal.

The appraiser is not entitled to engage in appraisal activities without concluding an insurance contract. Having an insurance policy is prerequisite to conclude an agreement on the assessment of the object of assessment.

Currently, valuation activities in Russia are regulated and controlled by special organizations authorized by the Government of the Russian Federation and the constituent entities of the Russian Federation, such a body is primarily the Ministry of Property Relations. In addition to state regulation, self-regulation of valuation activities is carried out by self-regulatory organizations appraisers. These include the Russian College of Appraisers, the National League of Appraisers, Russian society appraisers and the Moscow Society of Appraisers.

an important step In the development of appraisal activity in Russia was the introduction of its licensing, which made it possible to improve the quality of work performed, the responsibility of appraisers, and exclude random people who do not have the appropriate knowledge and qualifications from their number.

The object of valuation is any object of property. At the same time, not only the various characteristics of the object are taken into account, but also the rights that its owner is endowed with. The objects of assessment are objects of civil rights, in respect of which the legislation of the Russian Federation establishes the possibility of their participation in civil circulation. In the Russian law on appraisal activities, individual material objects (things) are classified as objects of appraisal. The totality of things constituting the property of a person, including property of a certain type (movable or immovable, including enterprises); the right of ownership and other real rights to property or certain things from the composition of property, acquisition rights, obligations (debts); work, services, information; other objects of civil rights in respect of which the legislation of the Russian Federation establishes the possibility of their participation in civil circulation.

When evaluating a business, the object is an activity aimed at making a profit and carried out on the basis of the functioning of the property complex of the enterprise. An enterprise (organization) is an object of civil rights (Article 132 of the Civil Code of the Russian Federation), enters into economic circulation, and participates in economic transactions. As a result, there is a need to assess its value.

The composition of the property complex of the enterprise includes all types of property intended for the implementation of its goals: for the implementation of economic activities and profit.

The property complex includes: real estate (land plots, buildings, structures), machinery, equipment, vehicles, inventory, raw materials, spare parts, parts, products, as well as property obligations, company name, service marks, trademarks and others types of intangible assets and intellectual property. Therefore, when evaluating a business, the appraiser evaluates the enterprise as a whole, determining the cost of its own capital. Given the methodological features and technology of appraisal work, there are objects of appraisal: the enterprise as a whole (business); real estate, machinery, equipment, vehicles, intellectual property and intangible assets.

Great importance has an organizational legal form of existence of the enterprise. When assessing, it is necessary to specify the composition of the property of the enterprise, its rights: after all, the structure of many industrial enterprises very complicated. The structure of the enterprise may include workshops, sections, service facilities, special units, office buildings, communications and communication facilities, which can be located in different areas and even in different regions. The object of assessment may be associations or holdings, or financial industrial groups. In this case, within the framework of one business, several subsidiaries, departments, branches. For a correct assessment, it is necessary to trace the formation of cash flows and the direction of their movement, as well as the rights and role of each unit. It is also necessary to find out whether the object of assessment includes subdivisions of the social and cultural sphere.

When evaluating a business, one must take into account the fact that an enterprise, being a legal entity, is also an economic entity (Article 48 of the Civil Code), therefore its value must take into account the presence of certain legal rights. This is one of the main features of business as an object of evaluation. Another important feature of a business as an object of evaluation is that, by estimating the value of a business, we determine the value of the equity capital of an enterprise (organization). The fact is that the basis of any business is capital, which functions within certain organizational structures of enterprises (organizations).

Therefore, when evaluating a business, we determine the cost of equity, taking into account its organizational legal form, industry specifics and intangible assets, including goodwill. For example, when evaluating the business of an open joint stock company, the market value of a 100% block of ordinary voting shares constituting the capital of this company is determined. The business owner has the right to sell it, mortgage it, insure it, bequeath it. Thus, the business becomes the object of the transaction, the product, with all its inherent properties.

Like any product, a business has utility for the buyer.

First of all, it must meet the need for income. Like any other commodity, the utility of a business is in use. Consequently, if the business does not bring income to the owner, it loses its usefulness for him and is subject to sale. And if someone else sees new ways to use it, other opportunities to generate income, then the business becomes a commodity. At the same time, income generation, reproduction or formation of an alternative business, a new enterprise is accompanied by certain costs.

Utility and costs together constitute the value that is the basis of the market value calculated by the appraiser. Thus, a business, as a certain type of activity, and an enterprise, as its organizational form in a market economy, satisfy the owner's needs for income, for which certain resources are spent.

A business (enterprise) has all the features of a product and can be an object of purchase and sale. But these are special goods. And these features predetermine the principles, approaches and methods of evaluation.

Firstly, it is an investment product, i.e., a product in which investments are made with the aim of returning in the future. Costs and revenues are separated in time. Moreover, the size of the expected profit is not known, it has a probabilistic nature, so the investor has to take into account the risk of possible failure. If future incomes, taking into account the time of their receipt, turn out to be less than the costs of acquiring an investment product, it loses its investment attractiveness. Thus, the present value of the future income that the owner can receive represents the upper limit of the market price on the part of the buyer.

Secondly, a business is a system, but both the entire system as a whole and its individual subsystems, and even elements, can be sold. In this case, its connection with its own specific capital, specific organizational and economic form is destroyed, business elements become the basis for the formation of a different, qualitatively new system. In fact, it is not the business itself that becomes a commodity, but its individual components, and the appraiser determines the market value of individual assets.

Thirdly, the need for a business as a commodity depends on the processes that take place both within the business itself and in external environment. Moreover, on the one hand, instability in the economy leads business to instability, on the other hand, its instability leads to a further increase in instability in the economy as a whole. This implies another feature of business as a commodity - the need to regulate both the business itself and the process of its evaluation, as well as the need to take into account the quality of business management when evaluating.

Fourth, given the particular importance of business sustainability for stability in society, it is necessary for the state to participate not only in regulating the business valuation mechanism, but also in the formation of market prices for a business, its purchase and sale.

1.3. Valuation purposes and value types

A professional appraiser in his work is always guided by a specific goal. A clear, competent formulation of the goal allows you to correctly determine the type of calculated value, choose the method of evaluation.

Typically, the purpose of an appraisal is to determine what kind of appraisal value is needed for a client to make an investment decision, to conclude a transaction, to amend financial statements, etc. Various parties are interested in carrying out appraisal work, from government agencies to private individuals: control and audit bodies, management structures, credit organizations, Insurance companies, tax firms and other organizations, private business owners, investors, etc. (Fig. 1.1).

Rice. 1.1. Parties interested in business valuation.

Parties interested in carrying out appraisal work, seeking to realize their economic interests, determine the objectives of the evaluation.

Business valuation is carried out in order to:

· improving the efficiency of current management of an enterprise, firm;

· purchase and sale of shares, bonds of enterprises in the stock market;

· making an informed investment decision;

· purchase and sale of the enterprise by its owner in whole or in part;

· establishing the share of co-owners in the event of signing or termination of the contract or in the event of the death of one of the partners;

· enterprise restructuring. The liquidation of an enterprise, a merger, takeover, or separation of independent enterprises from the holding requires its market valuation, since it is necessary to determine the purchase or redemption price of shares, the conversion price, or the amount of the premium paid to the shareholders of the acquired company.

· development plan for the development of the enterprise. In the process of strategic planning, it is important to assess the future income of the firm, the degree of its sustainability and the value of the image;

· determining the creditworthiness of the enterprise and the value of collateral for lending. In this case, an assessment is required due to the fact that the value of assets according to financial statements may differ sharply from their market value;

· insurance, during which there is a need to determine the value of assets in anticipation of losses;

· taxation. When determining the tax base, it is necessary to conduct an objective assessment of the income of the enterprise, its property;

· reasonable management decisions. Inflation distorts the financial statements of the enterprise, therefore, periodic revaluation of property by independent appraisers can increase realism financial reporting, which is the basis for making financial decisions;

· implementation investment project business development. In this case, to justify it, it is necessary to know the initial value of the enterprise as a whole, its own capital, assets, and business.

If the object of the transaction is any element of the property of the enterprise, as well as if property tax is determined, etc., then the necessary object is separately assessed, for example, real estate, machinery and equipment, intangible assets.

Valuation of individual elements of real estate of an enterprise is carried out in the following cases:

· sale of some part of real estate, for example, in order to get rid of unused land plots, buildings, structures; pay off creditors; to pay off partners in case of damage caused to them according to a court decision, etc.;

· obtaining a loan secured by a part of real estate;

· real estate insurance and determination in connection with this the cost of the insured property;

· transfer of real estate for rent;

· determination of the tax base for the calculation of property tax;

· registration of a part of real estate as a contribution to the authorized capital of another enterprise being created;

· assessment when developing a business plan for the implementation of any investment project;

· valuation of real estate as an intermediate stage in the overall valuation of the enterprise using the cost approach.

Estimating the cost of equipment is necessary in the following cases:

· sale of certain items of equipment, instruments and accessories for a number of reasons: to get rid of unnecessary, physically or morally obsolete equipment; pay off creditors in case of insolvency; replace the equipment with more advanced ones in terms of economic and environmental criteria;

· registration of a pledge under some part of movable property to secure transactions and loans;

· movable property insurance;

· transfer of machinery and equipment for rent;

· organization of machinery and equipment leasing;

· determination of the tax base for fixed assets when calculating property tax;

· registration of machinery and equipment as a contribution to the authorized capital of another enterprise;

· assessment of the cost of machinery and equipment in the implementation of an investment project.

Cost estimate brand name or other means of individualization of the enterprise and its products (services) is carried out:

· when they are repurchased, acquired by another company;

· when granting a franchise to new partners, when the sales market expands and sales volume increases;

· when determining the damage caused to the business reputation of the enterprise by illegal actions on the part of other enterprises;

· when using them as a contribution to the authorized capital;

· when determining the value of intangible assets, "goodwill" for the overall assessment of the value of the enterprise.

Thus, the validity and reliability of the assessment largely depends on how correctly the scope of the assessment is defined: purchase, sale, obtaining a loan, insurance, taxation, restructuring, etc.

In addition to situations in which the assessment is the implementation of the right of the state, subjects of the Russian Federation, municipalities or individuals and legal entities to assess the objects of assessment belonging to them, there are cases requiring mandatory assessment. The obligation to conduct an assessment is stipulated in federal law on valuation activities in the Russian Federation. Such cases, according to the Law, include transactions with objects of appraisal owned in whole or in part by the Russian Federation, constituent entities of the Russian Federation or municipalities:

· for the purpose of their privatization, transfer to trust management or lease;

· when using appraisal objects as collateral;

· when selling or otherwise alienating the object of appraisal;

· when assigning debt obligations related to the objects of appraisal;

· when transferring objects of assessment as a contribution to authorized capitals, funds of legal entities, as well as in the event of a dispute over the value of the appraisal object, in particular, in the event of the nationalization of property,

· in mortgage lending to individuals or legal entities in cases of disputes over the value of the subject of mortgage;

· when drawing up marriage contracts and dividing the property of divorcing spouses at the request of one of the parties or both parties in the event of a dispute over the value of this property;

· in case of redemption or other withdrawal of property from owners provided for by the legislation of the Russian Federation for state or municipal needs;

· when assessing objects of assessment in order to control the correctness of paying taxes in the event of a dispute about the deduction of the taxable base.

Depending on the purpose of the assessment and on the number and selection of factors taken into account, the appraiser calculates various types of value.

The concept and types of enterprise value. Types of enterprise values

Short description

Attached files: 1 file

1.3. Income approach………………………………………………………….. ….11

In accordance with Russian valuation standards, the procedure for estimating the market value of blocks of shares is carried out using three approaches: costly; comparative; profitable.

Each of these approaches has its own specific methods and techniques. The data used in one approach or another reflects either the present position of the company, or its past achievements, or expected future earnings.

After receiving the results of the assessment for each of the three approaches, the results of the company's market value are agreed upon and the package to be assessed is calculated.

1.2. Cost approach

net asset method. The value of net assets (equity capital) of an enterprise is determined by the formula:

C \u003d A - O (1)

where C is the cost of equity;

A - the market value of all assets;

O is the present value of all liabilities.

Calculation of the cost using the net assets method includes several stages:

1. The real estate of the enterprise is evaluated at market value

2. The market value of machinery and equipment is determined

3. Intangible assets are identified and evaluated.

4. The market value of financial investments, both long-term and short-term, is determined.

5. Inventories are translated into current value.

6. Estimated receivables.

7. Deferred expenses are estimated.

8. Liabilities of the enterprise are translated into current value.

9. The cost of equity capital is determined by subtracting the current value of all liabilities from the fair market value of the sum of assets.

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Introduction

In the practice of transactions with enterprises, a distinction is made between the purchase and sale of an enterprise and the purchase and sale of business. There are also transactions with ready-made firms - this means the sale and purchase of legal entities - registered firms.

Subject of evaluation are professional appraisers with special knowledge and practical skills.

In the absence of private ownership of real estate, such a profession as an appraiser was not required, since the state represented by its bodies (Goskomstat, Bureau of Technical Inventory, etc.) itself determined the value of its assets.

With the development of market relations in our country, more and more there is a need for professional and independent appraisers.

Objectives of assessments and enterprises .

* Improving the efficiency of the current management of the enterprise, firm;

* determining the value of the enterprise in the event his sale and purchase in whole or in part. It is often necessary to evaluate an enterprise in order to sign an agreement establishing the shares of co-owners in the event of termination of the agreement or the death of one of the partners;

* enterprise restructuring. Conducting a market assessment is expected in the event of liquidation of an enterprise, merger, acquisition or separation of independent enterprises from the holding;

* development plan for the development of the enterprise. In the process of strategic

planning, it is important to assess the future income of the company, the degree of its stability and the value of the image; determining the creditworthiness of the enterprise and the value of collateral for lending;

* insurance, during which there is a need to determine the value of assets in anticipation of losses; taxation;

* making informed management decisions. Inflation distorts the financial statements of the enterprise, therefore, periodic revaluation of the enterprise's property by independent appraisers is necessary;

* implementation of an investment project for business development. In this case, to justify it, it is necessary to know the initial value of the enterprise as a whole, its own capital, assets, and business.

Thus, the validity and reliability of the assessment of the value of the property complex largely depends on how correctly the area of ​​application of the assessment is defined: purchase and sale, obtaining a loan, insurance, taxation, etc.

At the same time, the same object, appraised at the same moment, will have a different value depending on the purpose of its appraisal, since the value will be determined by different methods and by different subjects.

1. Main types of value and principles of enterprise valuation

1.1 Main types of value

* one of the parties to the transaction is not obliged to alienate the object of assessment, and the other party is not obliged to accept the execution;

* the parties to the transaction are well aware of the subject of the transaction and act in their own interests;

* the object of assessment is presented on the open market in the form of a public offer;

* the price of the transaction is a reasonable remuneration for the object of evaluation and there was no coercion to make a transaction in relation to the parties to the transaction from either side;

* payment for the object of assessment is expressed in monetary terms.

2 . Types of value of the appraisal object other than market value:

* value of an appraisal object with a limited market - the value of an appraisal object, the sale of which on the open market is impossible or requires additional costs compared to the costs necessary for the sale of goods freely circulating on the market;

* the value of the appraisal object in the current use - the cost of the appraisal object, determined based on the existing conditions and purposes of its use;

* the value of the appraisal object for taxation purposes - the cost of the appraisal object, determined for the calculation of the tax base and calculated in accordance with the provisions of regulatory legal acts (including the inventory value);

* Disposal value of the appraised object - the value of the appraised object, equal to the market value of the materials it includes, taking into account the costs of disposing of the appraised object;

* special value of the appraisal object - the value for the determination of which the appraisal agreement or regulatory legal act stipulates conditions that are not included in the concept of market or other value specified in these appraisal standards.

1.2 Three main approaches to enterprise valuation

Assessment approaches - a brief description.

The choice of valuation method largely depends on the financial condition of the enterprise at the moment and what are its prospects. Depending on the state and prospects of business development, the calculation of the company's value can be based on the following approaches:

costly an approach

income approach

Comparative approach

costly The valuation approach considers the value of the enterprise in terms of the costs incurred. The value of the enterprise is recognized as equal to the value of the assets of the enterprise remaining after the repayment of all liabilities.

Comparative The approach assumes that the value of an enterprise is determined by how much it can be sold for in the presence of a sufficiently formed market. In other words, the most probable value of the valued enterprise may be the real sale price of a similar enterprise, fixed by the market.

When conducting an appraisal, the appraiser is obliged to use (or justify the refusal to use) all three valuation approaches, but he has the right to independently determine specific valuation methods within each of the valuation approaches.

Coordination of the results and final conclusion on the market value of the appraisal object.

Depending on the specific situation, the results of each of the three approaches may be more or less different from each other. The choice of the final cost estimate depends on the purpose of the estimate, the information available and the degree of its reliability.

The classification of assessment methods is shown in Fig. 1

2. Practical part

EUM №32

Option number 21

2.1 Income approach to property valuation

The income approach is a procedure for assessing the value of real estate based on the fact that the value of real estate is related to the present value of the future net income that the property will bring.

Initial investment 31,000 rubles.

Probability e 1 = 0.1; e 2 \u003d 0.5

Rate of return, % 9

Inflation rate, % e 1 = 3; e 2 =6; e 3 \u003d 8

Calculation of cash flow taking into account different probabilities of events

2.2 Cost approach to property valuation

n=22 G=2

The cost approach is based on the study of the investor's ability to purchase real estate.

The general formula for the cost approach is:

C costs= C memory + C NS - I = C memory+ sun And

Thus, the validity and reliability of the assessment of the value of the property complex largely depends on how correctly the area of application of the assessment is defined: purchase and sale, obtaining a loan, insurance, taxation, etc.