Property Valuation Under Bankruptcy Enterprises: Subtleties

The circumstances are different, and it happens that sometimes it is necessary to come to a decision to close the firm. The economic development of enterprises is not always stable, for example, during periods of crises, the risk of bankruptcy increases significantly. There are situations that lead to the inevitable bankruptcy of the enterprise . As registration of enterprises and the process of bankruptcy - not less responsible work, which should be approached with special attention. Property valuation is one of the basic procedures in bankruptcy, it can be carried out in various ways.

We will consider the role and subtleties played by the valuation of property in the bankruptcy of an enterprise. In the Russian legislation there is a "law on insolvency (bankruptcy)", basing on which this responsible procedure is conducted. The evaluation is always carried out by an independent appraiser, acting under the contract concluded between him and the bankrupt enterprise. What does the word "independent" mean? The appraiser should not be the owner, founder or employee of the enterprise. Creditors, insurers, shareholders, customers or other interested persons can not also make an appraisal of property. The relatives of the above-mentioned persons are included in this list. In the evaluation process, the customer has no right to interfere with the activities of the appraiser, to restrict it in the actions and to influence the work process.

The procedure for evaluating a bankrupt enterprise can be carried out in different ways, the decision on how to assess is taken as the case may be.

If in the course of discussions it was decided to sell the whole enterprise without dividing it into a part, an overall assessment is made, which includes a full description of the property and liabilities. This method is the most promising. First, the enterprise will be more profitable to sell entirely, especially if the company is promising and gives hope for the future. A working business that makes a profit automatically adds value to the value of the property itself. To assess the company's prospects, it is necessary to analyze the company's forecast, and if the evaluation gives positive prospects, then the sale of the enterprise will be the most profitable solution. In this case, a complete assessment of the property will be highly desirable.

If the decision was in favor of selling the property in parts, the valuation will be made separately for each category of property. Real estate and territory will be assessed separately, equipment, goods, intellectual property - all this is assessed on a separate basis. In this case, it will be important to successfully dispose of the sale objects in order to sell them in the future as profitably as possible. For example, the premises where the workshop is located are most promising to offer together with the equipment installed in it. After all, dismantling, transportation and further installation of equipment will be very expensive, and such an acquisition buyer will be entitled to consider unprofitable. Properly disband sales objects will help an independent appraiser. Accordingly, the cost of mutually beneficial lots will become more expensive if they are competently presented.

Next, you should choose which type of value will be most acceptable in bankruptcy. There is a market and liquidation value. Market value is the most acceptable price for the sale of property. Usually it is calculated within the average cost of the object. The liquidation value is advantageous in the case when there is no time to sell the property, and it is necessary to sell the enterprise as soon as possible. Usually for liquidation value, the property is sold at auctions.

Correctly assessing their capabilities and applying for help from a qualified expert, you will be most profitable to sell your business, avoiding undesirable losses.