{"id":3085,"date":"2018-06-04T00:00:00","date_gmt":"2018-06-04T00:00:00","guid":{"rendered":"https:\/\/myfairvalue.happy-projects.ro\/2025\/06\/12\/de-ce-evaluare-pentru-insolventa-copy\/"},"modified":"2025-09-12T08:36:14","modified_gmt":"2025-09-12T08:36:14","slug":"de-ce-evaluare-pentru-insolventa-copy","status":"publish","type":"post","link":"https:\/\/myfairvalue.happy-projects.ro\/en\/2018\/06\/04\/de-ce-evaluare-pentru-insolventa-copy\/","title":{"rendered":"Why you need to know the real value of your business"},"content":{"rendered":"<p id=\"\"><strong id=\"\">Most business owners only resort to a company valuation to cover an immediate need \u2013 when they want to sell or when one of the shareholders wants to exit the company.<\/strong><\/p>\n<p id=\"\">But a business valuation can be the safety code, including for preventing extreme situations faced by many Romanian companies that do not know the real value of the business they own, with over 100,000 of them entering insolvency in the last five years and only 3% managing to successfully reorganize, according to statistics.<\/p>\n<p id=\"\">Anu\u021ba Stan, a certified evaluator with over 24 years of experience, offers some essential advice for companies that always consider prevention policies to maintain a healthy professional climate in the long term.<\/p>\n<p id=\"\"><strong id=\"\">Revaluation of assets and liabilities every three years<\/strong><\/p>\n<p id=\"\">The present value of assets is an important indicator for a possible decision by the owners to reinvest part of the profit for the acquisition of new assets or for their refurbishment, and the market value of debts can influence the decision to refinance or reschedule them.<\/p>\n<p id=\"\">In annual or semi-annual financial statements, the carrying value of assets and liabilities may differ from their market value.<\/p>\n<p id=\"\">As a result, <strong id=\"\">the market value of the company's equity may be different from that specified in the balance sheet.<\/strong><\/p>\n<p id=\"\">Thus, shareholders or associates do not have a clear and real picture of the real value of the business they own. In addition, by corroborating the value of assets with other parameters such as strengths compared to competitors, future opportunities or competition in the market, owners can obtain valuable information regarding the current situation of the company.<\/p>\n<p id=\"\">According to International Financial Reporting Standards - IFRS, it is recommended that each company revalue its assets, at least once every 3 years, in order to reflect their fair values \u200b\u200bin the financial statements.<\/p>\n<p id=\"\">With the change in legislation, from January 2016, appraisers prepare two distinct reports: one for estimating the fair value of assets in the estate and one for estimating the taxable value of owned buildings.<\/p>\n<p id=\"\">It is important to note that the methodology for estimating taxable value is different from that used for estimating fair value. For example, in the case of valuation for determining taxable value, only buildings are valued, and the cost approach prevails.<\/p>\n<p id=\"\"><strong id=\"\">SWOT analysis of the company<\/strong><\/p>\n<p id=\"\">By identifying strengths and weaknesses, opportunities and risks, owners can find out the current situation of the company.<\/p>\n<p id=\"\">A professionally executed assessment helps decision-makers understand and take into account all aspects that may influence the evolution of the business.<\/p>\n<p id=\"\">Once known, strengths and opportunities can be emphasized and weaknesses and threats can be mitigated long before the business sale process begins, with increased chances of obtaining the best price.<\/p>\n<p id=\"\">A detailed radiograph of the business can be performed during the diagnostic analysis, an important stage in the evaluation process.<\/p>\n<p id=\"\">This analysis can extend to the company's legal situation, human resources and management, operational and commercial activity is analyzed, and within the financial diagnosis, the company's performance over the last 3-5 years is centralized and potential risks are identified.<\/p>\n<p id=\"\">The fundamental objective of any company is profit, which implies superior profitability, but also ensuring liquidity, solvency and financial balance.<\/p>\n<p id=\"\">All of these indicators, which reflect the company's financial position, are calculated and interpreted by the business valuation professional within the valuation report.<\/p>\n<p id=\"\">In fact, the company's financial analysis is the preliminary step to applying the valuation methodology, regardless of the chosen approach.<\/p>\n<p id=\"\">Co-opting evaluators in the mergers and acquisitions procedure<\/p>\n<p id=\"\">Valuation is an essential element in the procedures leading up to a business combination (mergers and acquisitions).<\/p>\n<p id=\"\">In a first stage of a merger, whether by absorption or merger, it is necessary to re-evaluate the assets of the companies in question, carried out by appraisers with appropriate professional qualifications.<\/p>\n<p id=\"\">Based on the results of the previously conducted valuation, the value of the companies' assets and liabilities is adjusted, the merger balance sheets are prepared, and the net asset value at the merger is determined.<\/p>\n<p id=\"\">In a third stage of the merger by absorption, the net contribution is determined through the global evaluation of the companies involved.<\/p>\n<p id=\"\">Therefore, it is important that the team preparing a merger or acquisition also includes authorized appraisers who understand that a business is an entity directly influenced by external economic factors, and knowing the value of the business means understanding its place in the market.<\/p>\n<p id=\"\">Published: http:\/\/www.business24.ro\/companii\/actionari\/de-ce-trebuie-sa-stii-valoarea-reala-a-aferii-tale-1593356 <\/p>\n<div data-rt-embed-type='true'>\n<div style=\"display: none;\">\n<link rel=\"canonical\" href=\"https:\/\/www.myfairvalue.ro\/news-room\/de-ce-evaluare-pentru-insolventa-copy\" \/>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Most business owners only resort to a company valuation to cover an immediate need \u2013 when they want to sell or when one of the shareholders wants to exit the company.<\/p>","protected":false},"author":1,"featured_media":3086,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[67],"tags":[],"class_list":["post-3085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companii"],"acf":[],"_links":{"self":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/comments?post=3085"}],"version-history":[{"count":1,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3085\/revisions"}],"predecessor-version":[{"id":3970,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3085\/revisions\/3970"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/media\/3086"}],"wp:attachment":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/media?parent=3085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/categories?post=3085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/tags?post=3085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}