Business valuation
Valuation of business is a core service provided by PKF Valuation of Property. This service helps determine a company’s real value, considering key financial and operational metrics, market position, assets, liabilities, and growth prospects.
What is Valuation of Business?
Valuation of business is the process of establishing the true worth of a company or its share. This evaluation takes into account the company’s financial metrics, market position, assets, and liabilities, as well as its development outlook. Business valuation can be conducted for an entire enterprise or for specific assets or business areas.
Why is Valuation of Business Needed?
Valuation of business supports informed decision-making in various scenarios. It can be used during the purchase or sale of a company, to attract investors, for mergers and acquisitions, business restructuring, tax purposes, and financial reporting. Accurate valuation provides business owners, investors, and creditors with an understanding of the company’s current value and potential risks, assisting in strategic planning and development.
Specifics of Valuation of Business in Kazakhstan
Valuation of business in Kazakhstan requires consideration of local legislation, economic conditions, and regulatory requirements. The evaluation process must reflect the legal and tax environment, market conditions, and macroeconomic factors affecting the company. PKF Valuation of Property specialists account for unique risks related to Kazakhstan’s political and economic climate and the specifics of operating within various sectors of the economy.
Situations Requiring Valuation of Business
Valuation of business may be necessary in the following cases:
- Market Value Determination: A fair market valuation is essential for business sales, purchases, or mergers, ensuring that entrepreneurs get a fair price or make advantageous acquisitions.
- Attracting Investors: A reliable valuation of business can appeal to investors, giving them confidence that they are investing in a promising project with potential for growth.
- Financial Planning and Lending: Valuation of business is often required for obtaining loans, as banks and financial institutions need precise asset valuations and current business worth to assess creditworthiness.
- Tax and Legal Support: Valuation of business is critical for tax purposes, including calculating the tax base during sales or inheritance. It is also needed in legal disputes, such as ownership division or partner disagreements.
- Management and Strategic Planning: Valuation of business enables owners to make informed decisions on expansion strategies, operational efficiency improvements, and company structure optimization.
Required Documents for Valuation of Business
The following list of documents is not exhaustive, and additional documentation may be required if necessary:
- Copies of founding documents (Articles of Association, Charter, Registration Certificate, Statistical Card, Taxpayer Certificate);
- Purchase agreement, transfer certificate for capital share;
- Payment documents confirming the purchase of the share (if applicable);
- Financial statements (balance sheet with annexes) for the past three years, breakdown of fixed assets, certificate on social facilities held on the company balance, copies of title documents for major assets, breakdown of receivables and payables with terms and reasons;
- Enterprise passport detailing production capacities, technological processes, and company history;
- Protocol of the authorized body’s decision (in accordance with the Charter) on approval to pledge a share.
Which Banks Accept Our Valuation of Business Reports?
Our valuation of business reports are accepted by all banks in Kazakhstan (Halyk Bank, Bereke Bank, Forte Bank, Jusan Bank, NurBank, Eurasian Bank, Bank Center Credit, RBK, VTB Bank) as well as major financial institutions such as the Development Bank of Kazakhstan, the European Bank for Reconstruction and Development, the Eurasian Development Bank, and BV Management.
Understanding the true value of your business is key to effective asset management and strategic growth. PKF Valuation of Property offers a comprehensive, professional approach, ensuring reliable valuations you can trust for decision-making. Submit a request, and we will reach out to discuss all the details and organize your business valuation.