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Business valuation

Home Services Business valuation
Our established clients:
КБ Еврофинанс Моснарбанк ОАО РОСНО Хорус Кэпитал

The recent record of business and enterprises valuation performed by our employees includes the following notable projects:

  • Within the frameworks of cooperation with JSCB EVROFINANCE MOSNARBANK, our Firm valued a package of shares of EVROFINANCE MOSNARBANK, OJSC Sovetskaya Zvezda, LLC Evrofinance Capital, MICEX;
  • Within the frameworks of cooperation with HORUS CAPITAL, our Firm valued a package of shares of the Company and its subsidiaries;
  • Within the frameworks of cooperation with OTP BANK, our Firm valued a package of shares of OJSC KARELSKY MEAT PACKING HOUSE.
  • Within the frameworks of cooperation with the Bank of Moscow, our Firm valued a package of shares of OJSC Wood and Paper Concern Kipelovo, CJSC National Timber Company, LLC Medvezhiegorsky timber industry enterprise , etc.;
  • Within the frameworks of cooperation with OJSC IC ROSNO, our Firm valued a package of shares of OJSC IC ROSNO;
  • Within the frameworks of cooperation with OJSC DORMOST, our Firm valued a package of shares of OJSC DORMOST;
  • Others.:
  • FAQs

1. Valuer’s fee amount will depend on:

Yes, it is true that the fee amount due for our services varies. For example, our fees for valuation of business (participatory interests in a limited liability company or packages of shares in a closed joint-stock company and open joint-stock company) ranges from RUR15,000 to RUR1,500,000 which may be attributed to the impact certain factors may have thereupon as below:

  • Size of your business;
  • Type of activities;
  • Branches, if any;
  • Assets recorded on the books;
  • Business plan of development availability;
  • Others.

We do not have a single pricelist similar to that used in valuation of an apartment or non-living premises.

When we perform valuation of businesses those may significantly differ by size, e.g.:

Ниже приведем примеры.

  1. A limited liability company, which has, say, two computers, scarce furniture and office equipment, must be valued. Its office premises are rented. The company has neither credits, nor borrowings. Its payables and receivables are but insignificant.

    Actually valuation of such company will be measurement of market value of its fixed assets and measurement of cashflow based on the retrospective analysis of its profit and losses. This work is not difficult and does not require massive resource and heavy time spending. Thus, here valuation fee will be about RUR30,000.

    But if the company has a fleet of motor vehicles or a building or premises, then the valuation fee will grow to be from RUR50,000 to RUR90,000.

  2. Also valued may be a company with a production basis in operation, which is on company’s records; the basis may comprise 20 buildings of different nature (the administrative building, shops, warehouses, compressor stations, pump buildings, branch railway line, utility systems, etc.), some 500 units of equipment, etc.

    Then the valuation labor costs increase and therefore the fee will increase, too, as this business valuation will require valuation of assets, in this particular case, the plant.

  3. When we value banks or insurance companies we do not have a uniform pricelist and the fee due for the services will be determined individually for each particular project.

Thus, such factors as complexity and the required depth of the works to be performed will largely determine the fee amount.

2. What documents you should submit?

Where a business is valued, collection of information may be performed in the following several stages:

1 Stage – preliminary.

First, you should deliver to us the data related to financial statements (forms 1 and 2) at the last reporting date and answer the following questions:

  1. How long does your company perform operations?
  2. What is the main type of operations of your company?
  3. What assets of your company are business-generating?
  4. Has your company contributions into share capitals of other companies?
  5. Has your company an affiliated network?

This information will allow us to:

  • Understand what type of business you are (small, medium or large);
  • Understand what hard assets are owned by the company;
  • Understand the expected labor inputs associated with the engagement;
  • Inform you about our valuation services fee and the project terms.

2 Stage - working.

At this stage the valuation contract has been already made and you will have from 3 days to 5 days to acquire the following documents and prepare information. Usually the documents are prepared by the company’s accounting office and lawyers:

  • Copies of the foundation documents (Articles of Association, Foundation Agreement, Certificate of Registration, Tax Registration Certificate);
  • Company’s structure;
  • Financial statements (forms 1 and 2) for the proceeding 3 years (annual and quarter);
  • The recent Auditor’s report (if audit performed);
  • Details of all balance sheet items (Form 1) at the recent reporting date;
  • Details of all annual articles of income and expenses (Form 2) for the last 3 years (structure of revenue, cost and other income and expenses);
  • Information about subsidiaries, holdings, if any, and their financial statements;
  • Business plan of the company for the next 3 to 5 years where gross receipt by goods/services, required investments, costs, net profit, all by years (if any) must be specified.

3 Stage – optional.

The list of the documents to be acquired at the 2nd Stage may be extended after the valuer acquaints itself with the valued object.

3. What is a rough estimate of your business?

There is no answer to this question. The cashflows model will be developed for each new enterprise individually. Also there are no software products in Excel that could allow for a qualified approximation. Besides, the final estimate will be under impact of many factors such as:

  • Market factors that require an in-depth analysis;
  • Financial and economic indicators which demonstrate a steady dynamics;
  • Regional factors and those of location;
  • Analysis of the competitive environment;
  • Individual characteristics of a specific business.

All this means that a professional valuer will never estimate its work roughly, as the preliminary estimation requires qualification, experience, knowledge and is time consuming.

4. How much time is required to value business?

Generally, from 1 business week to 4 business weeks as the works scope will depend upon the scope of your business.

It is a noteworthy fact that if you are pressed in time and it is necessary to obtain a valuation report in 2 or three days then it will be possible provided that:

  1. 1. You deliver information to us within the shortest possible time. Often a failure to do this has a negative impact on the valuation term. The client urgently needs the report but the client’s accounting officegathers the package of the documents during several days or even a week;
  2. Several experts will be engaged to perform the project (one expert will acquire and process information, the second one will analyze the market data, the third one will perform the required calculations, the fourth one will proceed with the execution of the report articles, and the fifth one will control the following process). It is possible to complete the project by a 3 to 5 man strength team within shortest time but its work will increase the fee amount due 1.5- or 2-fold.

5. We will be pleased to answer all your questions.
Please call us
+7 (495) 639-93-78. Our managers will promptly advice you.

Last news

27 December 2016
The Federal Service for State Registration, Cadastre and Cartography registered a new self-regulated organization (SRO) - “Federation of Professional Appraisers” Alliance (fsosro.ru).

On December 27 the Council of the SRO “Federation of Professional Appraisers” Alliance met for the first time at the conference hall of the Pekin hotel to discuss matters of priority appearing on the new SRO agenda.

Our congratulations to Alyona Verkhozina (Rogich), President of the SRO “Federation of Professional Appraisers” Alliance, and all members on the completion of the official registration, and best wishes for the fruitful journey ahead.

We also congratulate Irina Komar, Managing Partner of the Professional Group of Appraisal, on her appointment as Vice-President of the SRO “Federation of Professional Appraisers” Alliance.

16 December 2016
The Public Consultation Council yesterday held an extended meeting in the Moscow City Duma to closely review the situation surrounding the collection of the individual property tax in the city of Moscow. The meeting brought together leading experts in the field, representatives of the concerned ministries and departments of the Moscow City Government, as well as City Duma and State Duma deputies.

Irina Komar, Managing Partner of the Professional Group of Appraisal and Vice-President of the SRO “Federation of Professional Appraisers” Alliance, was invited to participate in the meeting as an expert representing the appraisers’ community.

16 December 2016
On 14 December 2016 the Commission for Operational Aspects of Bankruptcy Management (Liquidation) shortlisted a number of expert organizations accredited with the Agency that had submitted bids for provision of services to BANK GOROD (Protocol No. 60). The Commission resolved to pronounce the Professional Group of Appraisal as the winning bidder in the “Valuation Services” nomination.

14 December 2016
On 14 December RICS Russia & CIS professional groups organized a round-table meeting at the VIVALDI PLAZA Business Center to discuss the topic of Valuation Departments and Projects Management.

Anna Isaeva and Irina Komar, Managing Partners of the Professional Group of Appraisal, were invited to take part in the event, which unfolded in a friendly and professional atmosphere. One of the key messages of the meeting was delivered to the RICS members by Maarten Vermeulen, RICS Managing Director for Europe, Russia and CIS: "Notwithstanding the closure of the RICS office in Russia, the Institute will continue to organize professional events for the members in Russia and the CIS. As before, these will include conferences, round-table meetings and Assessments of Professional Competence (APCs)".

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