It’s a word we hear and use several times a day in the business world. Whether you’re in the banking, insolvency or finance arena, looking to restructure or sell a company, the true value of the plant and equipment assets must be known.
Put very simply (defined by QuickBooks and Investopedia), valuation is the process of determining the current worth of an asset that a reasonable person would pay to own..
In practical reality, the valuation processes can be complex; stakeholders are usually not professional valuation experts. We know what we want the business, property or assets to be worth or the price that we paid, but the true value needs to be determined.
Formal valuations are provided by professional valuers practising within their specialist asset class (eg plant & equipment; gems & jewellery; antiques etc), while complying with strict professional and ethical standards of the American Society of Appraisers Uniform Standards of Professional Appraisal Practice.
Suppose someone was in a financial bind or on a more positive note someone made an offer to purchase your business or/and its assets because they want to embark on a venture – time for a formal valuation.
For more information visit garryhorsnell.com.au