Valuation of a physical asset is a complex process that has the end goal of knowing the market value of the asset. As a valuer, my job is to incorporate the characteristics of an asset before coming to a number; like the useful life of the asset, level of maintenance and its contribution to the operations of the business.
Apart from estimating the monetary value of an asset, my report also highlights the contribution to the bottom line of business. All this is done after taking into consideration the present market conditions.
Some of the reasons for undertaking a valuation of a business asset are as follows:
- Mergers and acquisitions.
- Mandatory reporting under Indian GAAP, IFRS and US GAAP
- Seeking loans from a bank.
- Asset price allocation over its useful life.
- Ascertain non-performing assets.
- Support a ligation.
- MIS and strategic planning.
- IPO filings.
- Financial Investigations
- Selling an asset.