Guidelines for the valuation of the approach of business assets

Business evaluator using the approach in the valuation of the assets must have expertise in the field of property and business or in the case did not have the required expertise property valuation base of the Property Evaluation. 
Assets approach can be used to obtain the indication of the value of a company's value, the value of Invested Capital, or the value of capital structure, and the net value of the company or the (equity). 
In the case of an valuation carried out on the partial interest, the rights of ownership over these assets can be required to conduct sales or able to cause sales. Because only a majority ownership rights that have such (super-voting right), then the method based on the assets used to assess the ownership of which has control (majority interest). 
If the estimation of the value concerning the ownership of the minority discount because of the lack of control factors (Discount of Lack of Control) (DLOC) shall apply. 
If the valuations concerning the company or entity that is not easily sold sale, the indication of the value of the mandatory liquidity discount applied (Discount of Lack of Marketability) (DLOM). 
In the report Assessment of Business with the approach of assets, the Business Evaluation obliged to reveal the value estimate, based on the ownership of the majority and minority in this assignment for the majority. 
There are 2 (two) method approach in assets that is the method: Net Assets Adjustment (PAB) or the Net Asset valuation method (NAVM), Adjusted Net Asset Method (ANAM), Adjusted Book Value Method (ABVM) and the Assets Accumulation Method (AAM); and Excess Earning Method (EEM). 
Indication of the value of the equity is the value of the remaining net assets (net asset value), obtained from the difference between the value of assets, including tangible assets and no liabilities value, based on the adjusted value (appraised value).  
In the method PAB, no tangible assets identified and assessed individually on the method while KKP considered collectively (big pot theory of Goodwill) and referred to as going their concern value. 
KKP concept of the method is that the income generated by a company or agency business is the contribution of productive assets owned companies both tangible and not tangible. Any excess return or earning above the normal return to tangible assets, or is the result of the contribution of tangible assets is not considered collectively and as a return to collective assets are not substantial. Rating collectively no tangible assets acquired by converting (capitalization) the excess of income or return it, with the level of capitalization that are relevant and that is not calculated for tangible assets. 
KKP compulsory used methods to assess the equity business entities that are operating (operating company) with the level of revenue and profit growth is relatively stable. 
PAB compulsory used methods to assess: 
o equity in a body business where the value of the company depends on the (determined by) the value of fixed assets (a heavy fixed assets based on the company), such as real estate company; 
o equity from the parent company (holding company); 
o companies that do not have a history of steady income, the income fluctuates or question their ability to continue operations, which are going their concern, as the company's new stand (start-up company) and companies that are in difficulty (Stel companies); 
o doubt the company that their life as a new company or companies that stand is in financial difficulties; 
o companies that have the votes and control or significant tangible assets; 
o added value provided employment to goods and services produced small companies; and 
o no tangible assets owned companies are generally not very large. 

Net Assets Adjustment Method (PAB) 
o In the PAB method, the adjustments of assets required smooth conducted in accordance with the nature of the assets smoothly, including: cash and cash equivalents in accordance with the assessed value in the balance sheet (face value); receivables and the equivalent calculated in the valuation of receivables is equivalent to and believed can be billed; inclusion securities traded or adjusted based on market value reason and supplies, re-assessed on the basis of market value (net of costs associated with stock) or FIFO. 
o Rating tangible fixed assets carried out in accordance with the required method applicable in the valuation of the property in accordance with the premise that the value set. 
o no tangible assets Rating: Evaluation of Business is not obliged to identify the tangible assets of the company's votes and determine that no tangible assets which are eligible for the valuation done. valuation of tangible assets is not done: with a method that consider the economic benefits generated by the assets are not tangible; or on the basis of market prices of assets do not exist; or on the basis of the cost required to be re-created (the cost of recreation) is currently considering the remaining age benefit (remaining useful life). 
o Evaluation of Business mandatory rate each component is not tangible assets, which have the following attributes: can be identified and described specifically; can provide economic benefits for the owner that can be measured; have the potential to generate other related assets and to create or add value to assets another was a subject of ownership rights (right of private ownership) is transferred legally answerable (legally transferable); can be recognized and protected by the law exists with the evidence of the existence of assets not exist, and have a period of economic benefits. 
• Evaluation of Business obliged to reveal the identification of tangible assets is not assessed and the valuation method is selected in the rate of these assets. 
• Debt obligations or assessed on the basis of book value, unless there are other factors that affect. 
• Letter debt market that is assessed on the basis of market value.

I Think the-Articles related to property assessment/valuation and management report or control valuation can be viewed at:
Performance Evaluation in Valuation Property
Plan visits to direct visit
Key point to get property value
Market Data, appropriate to get market value now?
Management risk on valuation assessment
Quality control and the assignment in valuation
Serving Reports fairness opinion
Limiting conditions and the statement Valuer assessment reports

1 comment:

  1. I like looking at the data. Very informative actually.