Pricing Methods

Approach based compensation (Replacient Cost Approach) This method is used only for purposes of insurance under a contract full indemnity from the insured. Independent expert estimates the cost of business recovery at current prices. The independent expert is needed because the concept of 'complete recovery' is not particularly clear. Industry simplified approaches (Rule-of-Thumb Pricing Methods) in some traditional industries developed the time-honored relationships are often oversimplifies the case, but recognized principles generally accepted in the industry. Although such estimates is difficult to argue it should be done using other methods of assessment. Learn more at this site: Mirilashvili. Method secured loan (Secured Loan Value) is only used as a method of calculating the value of the loan, which may be held for further development of the company after its purchase.

Each firm's assets is evaluated separately and the sum is multiplied by averaged figure to which the banking industry multiplies the value of the asset, taking it as collateral. To estimate the firm should submit the following documents: Copies of constituent documents (Charter, Founding contract, certificate of registration). Copies of prospectuses, reports on the issue of securities (for joint stock companies). Activities and organizational structure of the company. Copies of leases for real property (if any). These financial statements for the past 3-5 years (or the possible number of previous periods): the balance sheet profit and loss statement last auditor's report (if performed audit).

Statement of fixed assets. Inventories of the property. Data on all assets (real estate, stocks, shares of the society, notes, intangibles, etc.). Explanation of accounts debt. Explanation of receivables: on terms of education, by type of receivables, the share of doubtful debts. Information about the presence of subsidiaries, holding companies (if any), financial documentation on them. Business-plan company in the next 3-5 years with an indication of the proposed gross receipts for goods / services required investment costs, net profit – over the years. This list is a preliminary document and may be shortened or extended following a detailed review appraiser with the task of assessment and a detailed analysis of specificity and an estimated fortune of the company. Dates of the assessment of the firm and the cost of services vary of their kind. The result of the assessment is an evaluation report on the company. If you need to evaluate a company, then you can contact us using the contact information.