The experience of the BIZON shows that evaluated company is much more interesting for the buyers comparing with the company which is not evaluated. Any business person who is searching for the business to buy wants to be sure that he has complete information about the real condition of the company, and when he will buy it, he will not have to experience any legal or financial traps later on. Best of all if conclusion of condition of the business is given by the specialists of third party.
We do not have any strict rules of evaluation of the company before the selling. It is covered by owner’s competency. Evaluated company participates with appropriate market price, which is based on documents. In this case it is much more easy to come to an agreement with a buyer and the deal can be concluded in much shorter period of time. Comparatively little investment in the process of selling can result in good yield concerning finances and time!
Evaluation of the business includes:
- Legal audit:
- Inspection of main documents (registration card, taxpayer card, inspection of internal regulating documents. Inspection of owners or those who are authorized to conclude the deal and inspection of the payment of sharecapital);
- Business history survey;
- Inspection of the documents which ensure the ownership of the real estate, land, equipment and machinery (rentals, leasings, franchises, supplyings and other long-term contracts);
- Inspection of normative documentation (licences, certificates, insurance policies);
- Inspection of the documents which ensures the right on intelectual property (trade marks, brands, inventions);
- Personnel documentation survey.
- Audit of financial and economic activity:
- Analysis of financial and economic activity of the company and its accordance to normative documentation;
- Evaluation and revaluation of fixed assets;
- Evaluation of the property (land and real estate) as well as equipment, machinery , furniture);
- Market survey;
- Cash flow survey, which is produced by business and establishing of discount rate.
- Establishing the market value of the business using the method of profit discount or other appropriate methods.
- Preparing of conclusion about the condition of the business and its market value or a list of recommended improvements or recommended investments depending on task of the evaluation.