How to evaluate a construction company. Independent assessment of the enterprise. Assessment of the state of the enterprise

Assessment of the market value of construction work
Determining the market value of actually completed work
Determining the market value of construction work, assessing non-residential premises, choosing a method for assessing non-residential premises, the process of assessing construction work

Object of construction assessment: non-residential premises

Assessment address: Moscow

The purpose of the assessment is to determine the market value of actually completed construction, installation and finishing works in non-residential premises with a total area of 199.4 sq. m.

Certificate of Quality Assessment

The assessment has been carried out and the report compiled in accordance with the requirements set out in the following documents:

the federal law“On valuation activities in the Russian Federation” No. 135-FZ dated July 29, 1998, as amended. No. 91-FZ dated 05/07/2009;
“Federal valuation standards, mandatory for use by subjects of valuation activities”, FSO No. 1,2,3 approved by Orders of the Ministry of Economic Development of the Russian Federation dated July 20, 2007 N 256, dated July 20, 2007 N 255, dated July 20, 2007 N 254.

The facts stated in the report are correct and true.

The analyses, opinions and conclusions contained in the report are those of the appraiser himself and are valid strictly within the limits of the restrictive conditions and assumptions that form part of this report.

The appraiser's remuneration does not depend on the results of the final valuation, as well as those events that may occur as a result of the use by the customer or third parties of the findings and conclusions contained in the report.

Appraisers have no real or perceived interest in the property being appraised and act impartially and without prejudice towards the parties involved.

The facts presented in the report, on the basis of which the analysis was carried out, assumptions and conclusions were made, were collected to the greatest extent possible using the knowledge and skills of the Appraiser, and are, in his opinion, reliable and free of factual errors.

The source data used by the Assessors in preparing this report has been obtained from reliable sources and is believed to be reliable, although references to sources of information are made where possible.

This report is reliable only for the purposes stated herein;
The Customer and the Contractor do not undertake any obligations regarding the confidentiality of settlements. The Contractor does not accept responsibility for describing the legal status of the assessment object;
The Contractor relied on the accuracy of the original information provided by the Customer;
The property assessment was carried out on the basis of an inspection of the property and information provided by the Customer.
In accordance with the task set by the Customer, the Contractor’s responsibilities do not include the assessment of the Customer’s property rights to real estate.
When conducting the assessment, it was assumed that there were no hidden factors affecting the value of the property. The Contractor is not responsible if such factors are discovered after the assessment.
Neither the Customer nor the Contractor may use the report (or any part of it) other than as provided for in the text of this report;
The Contractor's opinion regarding the value of the valuation object is valid only as of the valuation date. He does not accept responsibility for subsequent changes in social, economic, legal and natural conditions that may affect the value of the property being assessed;
The Contractor is not obliged to provide additional advice on this report in connection with the subsequent provision of information that may in any way affect the conclusions made in the report regarding the value of the object;
The Contractor is not required to appear in court or otherwise testify regarding the completed report or the subject of the assessment, except on the basis of a separate agreement with the Customer or an official summons from the court.
The appraiser personally inspected the property. The determination of the market value of the actual work performed by the appraiser was carried out based on the volumes recorded during the survey without opening the external finishing coatings.
Acts for hidden work and project documentation not available to the appraiser.

The assumptions and limitations described above imply their full unambiguous understanding by the parties signing the report. All provisions, results of negotiations and statements not specified in the text of the report are void. These assumptions and limitations cannot be changed except by the signature of both parties.

Without the written consent of the Appraiser, this report must not be distributed or published, nor used, even in abbreviated form, for purposes other than those stated above. The appraiser does not accept any responsibility for losses that may arise to the customer or another party as a result of violation and/or disregard of the formulated limiting conditions.

Evaluation process

Basic concepts and definitions. According to Article 623 of the Civil Code of the Russian Federation, “improvements that can be separated from a thing without harm to it are recognized as separable. Accordingly, inseparable improvements, when separated from a thing, worsen its condition, as a result of which it acquires defects. The law does not say what the degree of damage to a thing must be in order for improvements to be recognized as inseparable. Therefore, one should come to the conclusion that the damage can be of any kind, the main thing is that as a result of it the thing has defects for which the tenant is responsible.”

Price is a term that denotes the amount of money demanded, offered, or paid for a good or service. She happens to be historical fact, that is, refers to certain moment time and place, regardless of whether it was announced openly or remained secret. Depending on the financial capabilities, motives, or special interests of the particular buyer and seller, the price paid for goods or services may not correspond to the value ascribed to those goods or services by others. However, price is an indicator of the relative value ascribed to goods or services by a particular buyer and/or a particular seller under particular circumstances. (MSO. General concepts and evaluation principles. M., 1994).

Value is an economic concept that establishes the relationship between goods and services available for purchase and those who buy and sell them. Value is not a historical fact, but an estimate of the value of specific goods and services at a specific point in time according to a chosen definition of value. Economic concept value expresses a market view of the benefits that the owner of a given product or client who is provided this service, at the time of valuation. (MSO. General concepts and principles of assessment. M., 1994).

The cost of replacing the appraisal object is the sum of the costs of creating an object similar to the appraisal object, in market prices existing on the date of the appraisal, taking into account the depreciation of the appraisal object. Replacement value is usually used for insurance purposes as an estimate total costs for property restoration. Valuation procedures that use replacement or new construction costs as the basis for calculating the business value for a purpose financial statements, are considered appropriate in limited circumstances, as outlined in ECO 4 on depreciated replacement costs (ARC). Calculations of valuations for insurance purposes are sometimes carried out simultaneously with asset valuations.

Reinstatement value - the costs that are necessary to replace, maintain or overhaul the insured property in order to bring it into substantially the same, but not better, condition than that in which it was when new (without expanding it ). (MP 3, clause 3.5.5)

Appraisal is the act or process of determining value. Synonym for Valuation. (Business Valuation Standard, BVS-I. Terminology).

Appraisal date – the date on which the appraiser’s conclusion on the value is valid. (Business Valuation Standard. BVS-I. Terminology).

Property rights are rights associated with ownership of real estate. Property includes the right to use property (property), sell it, rent it out, donate it; as well as development, agricultural use, mining, alteration of its topography, division, consolidation or refusal to exercise all these rights. A combination of property rights is sometimes called a bundle of rights. Property rights are generally subject to public and private restrictions, such as easements, rights of way, zoning, building densities, and other restrictions that may encumber the property. (MP 1, 3.0).

Types of property - international valuation standards clearly distinguish between the concepts of real estate and real estate. Real estate is a material object (thing) and is defined as a physical plot of land, subsoil plots, isolated water bodies and everything that is directly related to the land, i.e. objects, the movement of which without disproportionate damage to their purpose is impossible, including: forests, perennial plantings, buildings, structures. (IVS, Concepts/Principles, paragraphs 2.0, 2.1)

Real property is a legal concept that refers to all the rights, interests and benefits associated with the ownership of real estate. An interest in real estate is usually formalized by a formal document, such as a title deed or a lease. (IVS Concepts/Principles, 3.2).

Real estate is the physical land and all things that are a natural part of it, as well as objects attached to the land by people. (IVS. Concepts/principles, paragraph 3.1).

Market value is the estimated amount of money for which property would be exchanged on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, in which each party acted knowledgeably, prudently and without coercion. Market value is an objective assessment of the established ownership of a particular property as of a given date. (IVS 1, paragraph 3.1).

Market approach is a general way of determining the value of an object or its equity, which uses one or more comparison-based methods of this enterprise(object) with similar investments (objects) already sold. (Business Valuation Standard, BVS – I, Terminology).

The income approach is a general way of determining the value of an object or its equity capital, which uses one or more methods based on the recalculation of expected income. (Business Valuation Standard. BVS-I. Terminology).

The cost approach is an approach to valuation that determines the value of an object by determining the present (current) value of the asset minus various elements of wear and tear: physical, functional and economic. (Business Valuation Standard. BVS-I. Terminology).

Selecting a valuation base

The purpose of this assessment is to determine the reasonable cost of the costs necessary to create an object similar to the appraisal object, in market prices existing on the date of the appraisal, taking into account the depreciation of the appraisal object - Replacement cost of the appraisal object.

Replacement value is the sum of the costs of creating an object similar to the appraisal object, in market prices existing on the date of the appraisal, taking into account the wear and tear of the appraisal object.
The expert selected replacement cost, determined by the cost approach, as the basis for the assessment.
The assessment procedure includes the following:
visiting the site to conduct an inspection and record the volume of work performed;

collection and analysis of necessary information and documentation;

calculating the cost of costs by drawing up estimate documentation or costing for property repairs; preparation of a written report. Selection of approaches and methods of assessment

The cost approach is a set of methods for estimating the value of an appraised object, based on determining the costs necessary to reproduce or replace the appraised object, taking into account wear and tear and obsolescence. The costs of reproducing the valuation object are the costs necessary to create an exact copy of the valuation object using the materials and technologies used to create the valuation object. The costs of replacing a valuation object are the costs required to create a similar object using materials and technologies used at the valuation date. As already reflected above, it is applied in the absence of market information on transaction prices or income from real estate. In this case, when assessing the market value of the repairs performed, it is the only option.

Comparative approach - to apply the comparative approach when valuing real estate, it is necessary to have information about the sale of comparable properties. However, in the absence of information on actual transactions, it is possible to use data on the offer of sales of comparable analogous objects.

The income approach is a set of methods for estimating the value of the valuation object, based on determining the expected income from the use of the valuation object. The income approach includes two main techniques. According to the first, the value of an object is calculated on the basis of the current annual income from its operation, using special coefficients that reflect the relationship between property values and income level that has developed in the market. In the second, a forecast is made regarding operating income for a certain period in the future and the likely sale price of the object at the end of this period, and then the present value of all future income is calculated and summed up, using a special coefficient reflecting the risk that accompanies the investment in this object .

Description of the valuation object

The object of assessment is a complex of construction, installation and finishing works, as well as materials and equipment spent to carry out inseparable improvements in non-residential premises. The room with a total area of 199.4 sq. m., located on the first floor of a residential building, consists according to explication of rooms 1,2,3,4,5,6,7,8,9 premises XXXIII.

Appraiser's conclusion

The purpose of the assessment is to determine the market value of the actual work performed in order to inform the Customer. In accordance with international and determination of the market value of the valuation object must be obtained by agreeing on the values of value determined as a result of the use of various valuation methods, namely: cost, comparative and income approaches. Coordination of the results obtained various methods , as a rule, is carried out by introducing for each of them a corresponding weighting coefficient, reflecting the degree of its reliability. As follows from the conclusions made by the Appraiser in the process of preparing this report, one of the three assessment approaches was used - costly. Based on the above, and guided by my experience and professional knowledge, The appraiser considered it possible to give the following

specific gravity

the value obtained by the cost approach is 1.0 (100%). Thus, the market value of the valuation object - actually made inseparable improvements to the premises, as of the valuation date, taking into account VAT and rounding, is: 2,358,000 (Two million three hundred fifty-eight thousand) rubles. Constant increase in construction volumes in major cities led to rapid growth

construction industry and a sharp increase in the number of individual companies engaged in the construction business. Construction, like any other business, involves constant movement of capital, one of the forms of which is the purchase and sale of construction companies. When a company changes hands, the question always arises of fair monetary compensation to its owner for the assignment of ownership rights to this company

. If the transaction takes place in the open, competitive market, while both the buyer and the seller act reasonably, without coercion, each in their own interests, then the transaction price will be equal to the market value of the company.

Market value assessment construction business has its own characteristics.

As you know, the value of a business can be determined by three approaches - cost, comparative and profitable. However, in case

The value of a construction company's assets is usually not high. If you determine the value of a company based on the market value of its assets (as should be done when applying the cost approach to valuation), then the market value of the business will be significantly underestimated. The only case when the use of a costly approach to business valuation is justified is a pre-bankruptcy situation, when the company experiences a chronic lack of orders, and the prospects for further obtaining new construction contracts look uncertain.

Business valuation construction companies It is best carried out using income approach methods, which rely on both retrospective and forecast data on the income and expenses of a construction company for a certain period. At the same time, the depth of the retrospective analysis must be at least 3 years, and the forecast period - at least 2 years. A retrospective analysis of an enterprise’s activities is very important, since it allows you to create an objective basis for further forecasts and reasoning. For example, if the company has shown stable growth over the past 5 years net profit by 30% per year, then with a high probability this pattern may continue in the future. Therefore, when making a forecast of business income and expenses for the next 2 years, the appraiser can more reasonably determine the forecast values of net profit for the forecast years. This valuation method is suitable for determining the market value of any business related to the provision of services, including construction services.

Comparative methods for evaluating a construction business can also give good results, but the possibilities practical application The comparative approach is limited by the lack of reliable information on sales of similar enterprises.

Indeed, sellers and buyers of construction companies are not inclined to disclose the prices of completed transactions - as a rule, price information in these cases does not extend beyond a narrow circle of participants.

The shares of construction companies are practically not traded on the organized securities market, so it is not possible to obtain information about sales here either. Thus, the most reliable way to evaluate the business of construction companies is the income approach. To approximate the market value of a construction business, you can use our income approach

free service

Construction machinery and equipment are the most important asset of any construction company. The assessment of this equipment involves an examination, as a result of which its exact cost will be determined. The results of the inspection may be needed when pledging equipment, selling it, renting it out, or simply for accounting purposes.

What construction equipment is subject to assessment?

You can estimate the real value of anyone construction equipment. However, there are several main types of technology:

Equipment for excavation work: earth-moving equipment, soil-compacting machinery or equipment for preparing land for work.
Handling and transport equipment: lifting mechanisms, loading and unloading equipment, transport equipment.
Drilling equipment: various excavators, tractors, drilling rigs and other special equipment.
Equipment for concrete and reinforced concrete works: machines and mechanisms that transport or mix concrete. This also includes equipment for fittings.
Equipment for finishing work: mechanisms for plastering, painting or roofing work.
Road equipment: devices for preparing or installing road surfaces.

In what cases is construction equipment assessed?

The need to conduct an examination to evaluate equipment arises with any legal actions related to it. For example, such an assessment is necessary when selling, purchasing or leasing equipment.

An assessment is also necessary when lending or insurance, since the price of equipment affects the size of payments, contributions, etc. Equipment is assessed when it is written off or the enterprise goes bankrupt.

Conducting an appraisal examination is necessary during legal proceedings for which the cost of the company’s equipment is important.

Plus, with the help of an assessment, company owners can find out the real cost of their accounting equipment.

List of documents required for assessing repair equipment

Before the experts begin their work, you must provide all the necessary documents.

First, you will need documents confirming that you are the owner of the construction equipment. Secondly, prepare a list of all equipment, in which for each piece of equipment indicate the make, model, serial number, year of manufacture and its characteristics. All information must be confirmed, so you will also need passports and documents for all equipment.

If an assessment has been carried out before, you will need the results and the cost of the equipment at that time. You will also need information about the repair of each piece of equipment, if any.

Order an estimate of the cost of construction equipment

The importance of assessing construction equipment is difficult to overestimate. It will not only allow you to form a competent pricing policy, but also to avoid possible financial losses.

At competitive prices, you can order an examination from our company Soyuz-Expert. As a result of the inspection carried out by our experts, you will receive an official document “Valuation Report”, which has legal force and contains evidence of the value of your equipment.

You can order an assessment or get a consultation in any way convenient for you: write to us by e-mail, call one of contact numbers or contact our office directly.

Ask a question and experts will answer it.

Assessing the real value of construction company shares is one of the most difficult tasks for an investor. This was always true because they were never traded at their true price. Before the crisis, they were placed at extremely high prices; currently they are quoted significantly below their fundamental valuation. This article is based on conclusions from research into the specifics of several large construction companies. This analysis made it possible to construct an adequate algorithm for estimating the value of their shares.

Why are standard methods powerless against SC?

developers are not amenable to standard approaches to assessment. For example, such an exponent as revenue for an insurance company has no content, since without property revaluation, this index reflects only how actively sales of real estate assets were carried out in a certain period of time. If this indicator for company X is zero, then this means that during the reporting period it was engaged exclusively in construction, without selling anything on time. On the same basis, it is impossible to forecast the value of shares in the future using traditional ratios (P/BV, P/E, P/S and others).

to predict the price of shares of the insurance company

Based on the above, in relation to construction companies, the alternative is to make a forecast of the book value of a specific insurance company in the future, that is, you need to estimate the market value in the future of the projects that it currently has. Of course, the task is more extensive than standard methods. So, the sources of information on the insurance system should be the following documents: standard financial statements; IC quarterly and annual reports; financial statements according to international standards with comments; expert appraiser's report; information that the insurance company presents to investors; additional open access sources: articles, news feeds , forums and more. Emerging problems in information processing:

As a rule, the standard accounting statements of the insurance company are not consolidated, that is, each construction project is identical to a new legal entity.

International standards reporting also creates an obstacle: civil engineering projects (they are the ones that prevail in the insurance company’s portfolio) are included in the “Reserves” item and are valued at real costs, and not at fair ones. The appraiser's report, published by some companies, contains a complete list of objects with basic characteristics and ratings for each of them. But, firstly, the investor needs the value of the share in the future, that is, the price of the insurance portfolio in the future. Secondly, the parameters by which the cost of objects is derived may be different. What is important for an investor, first of all, is the forecast of changes in the value of real estate and construction projects. Returning to the crisis, we remember that the same experts either did not change prices in their estimates for a number of years (despite changing market trends), or seriously underestimated them throughout the year. Therefore, the reports of such specialists do not deserve trust, and their reports can be taken solely as data about the object and its main parameters (type and class of real estate, work deadlines, location, share of the insurance company in the project and area). Algorithm for predicting the price of shares of insurance companies is the difference in the time of the project and the time of actual sales. You also need to track actual sales according to reporting: for a month, for six months, for a year. Another distinctive point is sales by stages, that is, the difference between the cost at the stage of construction of the object and the market value of the constructed object. It is explained both from the side of the developer and from the side of the shareholder. From the first point of view, this is raising funds for construction. For the shareholder, the discount is fraught with risks. As the property is built, the discount and risks decrease. Ultimately, the object comes down to the difference in the income of the insurance company from sales of apartments and construction costs. Valuation of commercial sector facilities The distinctive characteristics of this segment are: Occupancy rate – part of the areas commissioned from the total area of the facility. Capitalization rate is the ratio of real estate rental and its value (taking into account market conditions). Commercial real estate involves two implementation options: sale and. In both cases, in addition to a discount similar to residential real estate, a discount is implied for the sale of all areas at once, or parts of areas in large quantities. If the premises are to be rented, they are calculated cash from her. The volume of a developer's portfolio is the sum of completed objects and unfinished ones. Assessment of objects at the design stage and land When calculating these parameters, you need to understand: Both agricultural land and land for the construction of structures are calculated using the comparative method. The sale of land in suburban settlements is calculated in terms of monetary profit. If the project is not started within the next few years or specific documentation for the object is not received, then it is calculated as land. At this stage, the following indicators are summarized: Price of unfinished objects. Price of finished objects. Expenses for the construction of facilities. Income from sales of residential space. Income from sales of commercial space. Rental income. At the forecasting point, the first two indicators reflect the balance sheet capital stock in the future. V in monetary terms reflect income minus expenses. Part of it will remain undistributed and will also reflect the book capital of the insurance company in the future. The other part reflects cash necessary companies to carry out activities. Adjustments based on actual reporting of the insurance company

At this stage, we proceed directly to drawing up a forecast of the book capital of the insurance company in the future, for this we compare it with the current book capital. Only those objects that exist at the beginning of the term are subject to revaluation. The implementation of new objects is not recorded. Next, the volume of financing for the implementation of the activities of the insurance company is calculated. Their implementation is possible through additional issue of shares, sale of objects or debt management. In addition, it is necessary to take into account the insurance company’s tax obligations, including those on sales.