Project Report or Business Report or Valuation is a pROCess of assessment or better-called appraisal of the assets of a Company including:
Tangible or intangible assets
All liabilities and a specific business as a going concern
Any Company whether it is listed or unlisted
Any other forms of organization assets (for eg.partnership or proprietorship, etc )
The term ‘Value’ in valuation means the worth and can be in terms of materialistic or monetary worth. This worth can be estimated and evaluated in terms of the medium of exchange.
Factors Influencing the Valuation
Business valuation is a tedious task and is very much crucial for the organisation. For the evaluation purpose, there are a lot of factors, professional judgement and experience which is necessary. This pROCess must be undertaken by a valuation professional who meets the appropriate credentials. The factors include, as listed below:
Recognising or knowing the purpose of the valuation
The subject Company is being affected by the value drivers.
Understanding of the industry
Competitive and economic factors
The selection and application for the proper approaches of valuation.
Reasons for valuation:
The following are the following reasons for which we need the valuation:
The formulation of a scheme for uniting or amalgamation with others.
For the purchase and/or sale of shares of the private associates and firms
For the purpose of raising a loan on the security of shares.
For the Conversion of shares
We even require valuations for the acquisition of shares of dissenting shareholders under a scheme of reconstruction.