We are all in the business to make money. Knowing where your money is going to and the worth of your business is very important as this will affect the long term outcome of your business profitability. The valuation of a business can be conducted so that you have a greater understanding of what your business is actually worth. There are different ways that a property valuation company will go about conducting the valuation on your business as the valuation is done not only on your property but on your business as whole.

The valuation of a business can be split into four separate sections:

  • Market value or fair value
  • Existing use value or going concern value
  • Gross current replacement cost
  • Rental valuations

All of these four sections cover different aspects in the valuation process. Each of them are important in their own right and will provide you with information that is necessary for the smooth running of your establishment. In the case of gross current replacement cost, this valuation will look into your insurance, loss assessment and arbitration in more detail. Knowing exactly what the valuation for these aspects is will help you in the long run. The most important consideration when insuring goods is that you are not over or under insured. Making sure that your business and its goods are insured at market or fair value is of utmost importance. The gross current replacement cost valuation will make it possible for you to know exactly how much your property and goods need to be insured for. Valuations will be able to highlight where your business is making losses so that you can rectify the situation.

How can a valuation help the business when old equipment needs to be replaced?

Carry the costs for replacing equipment, especially heavy machinery, can be a huge financial burden on your business. If you are worried about the costs of replacing your old equipment, a valuation can help you to secure a loan. Banks need to see exactly what your business is worth and how you can pay the money back that they lent you over a period of time. A valuation certificate will supply the bank with all of the information that they need in order to decide whether or not you could qualify for a loan. If you can prove that you have a successful business that just needs a few upgrades on its equipment, you will certainly be able to get a loan. You will then be able to buy the new equipment and machinery that you need without having to worry too much about the financial implications on your business.

Finding the right company to assist you with your business valuation is not that difficult. The Property Partnership has been doing valuations for years and will ensure that they provide you with a fair assessment of your current business. From commercial property leasing to business valuations, The Property Partnership will be able to help you. To find out more about how The Property Partnership can help your business, visit their website www.property-partnership.co.za.