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Valuation of business and securities

Valuation of business and securities

Evaluation of the business value is the determination of the value of the company as an economic subject directed to get economic benefits. 

Business value is a sum of all values of rights realized via claim rights of judical person conducting relevant business over the shares, charter capital shares and loans on a fee basis.

Currently, 10 % of the valuation services market belongs to business valuation in Azerbaijan.   

Our employees have a significant experience related to the valuation of business, securities and shares of companies. This allows us to fulfill any complex duty and to keep stable reputation in the market.

The value of all assets and liabilities, including the value of real estate, transport and equipments, warehouse storage, investment receivables, intangible assets, loans of company is identified while implementing valuation.

Moreover, the work efficiency of the company, its past, present and future profits, development perspectives in existing market and competitive environment are evaluated and then, the company is compared with analogue enterprises. The value of a business is determined based on this complex analysis.       

A modern company is a complex structure combining a number of various assets from real estate to the business reputation of the company. That’s why it is important to implement the business valuation process based on all existing valuation methods: a cost-value, profit to value and comparative. All these methods are not isolated and they complement each-other. Each method is specific due to certain features that influence the amount of the value of company in this or other way.

Thus, the value of the property (sum of tangible and intangible assets) of the company is essential in terms of a cost-value approach. A cost-value approach is based on the typical motifs and ideas of medium/light buyer who is not going to pay more money for the actual value of all assets of the company.

Future profits of the company play an essential role in the process of valuation from the view point of profit to value approach. This approach is based on the expectations of investors, so that they consider the amount of forecasts on the future profits of the company to determine current value.

Market report containing purchase and sale deals related to the analogue enterprises or their shares is essential in comparative approach to business valuation. Comparative method is based on the principle of substitution and according to this principle the value of main company cannot be different from the value of other enterprise of the equivalent profitability for the potential customer.

All these above-mentioned methods have specific privileges and shortcomings with high usage areas combining a number of different methods. We choose the most relevant methods for the concrete evaluated object among those methods.

The main objectives of the activities related to the business and securities valuation are as follows:

  • Purchase and sale of business, change in the composition of business players;
  • To identify creditworthiness of the company and the value of collaterals for lending;
  • attraction of additional investments (issue of securities);
  • foundation of new joint company;
  • to increase management efficiency of the company;
  • founder withdrawal or new founder admission;
  • regulation on Succession Matters;
  • Access to WIPO;
  • Restructure of the enterprise (cancellation, merger, “takeover” or separation from holding as an independent company);
  • Handing over ownership rights;
  • purchase of shares from shareholders;
  • Settlement of property disputes;
  • Inclusion of property into charter capital;
  • revaluation of assets for IFRS,etc.

We realized a number of big projects related to the valuation of business in different fields of economics, including the valuation of fuel and energy, shipbuilding, instrumentation, nanotechnologies, insurance and banking and transport.   


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Organizations can hire consultants when there is a lack of people who are able to solve certain problems. This is often needed special methods and techniques which consultant understands better than others.

Sometimes there is a need for necessary skills and qualifications in the organization, but owners and top management don’t have enough spare time to engage with the problem arouse comprehensively and for a long time.

Even the best people may be affected too much by personal relationships and existing traditions and values which prevent them to see the problem with its real color within the organization. As a rule, the consultant is not subordinate to the Client-organization and is not liable to the internal relationships. S/he can express an independent opinion and remain unbiased when members of the company cannot be impartial.

Indeed, the educational effect of the activity of consultant is the most important. Duties of consultant: to bring new knowledge and skills to the company and to assist managers and staff to learn from their own experience. In other words, consultants teach and help a company to assist itself.