As a business owner it is imperative that you have your business, its contents and of course, any future growth managed as regularly as possible. In the current business climate, things could change at the drop of a hat – you might find that your profits are not what they used to be and might be considering selling. If you have not had asset valuations done throughout the course of your business lifespan, this could be detrimental to your business as you will not receive what your business is worth. Asset management and asset valuation form an integral part of any business, no matter what industry you are in.

What is asset management?

Asset management is a process in which the best use of an organization or business’ assets are managed in order to maximize shareholder value and to obtain the best possible returns for the other stakeholders in the business or organization. Assets would include fixed assets such as buildings and equipment and liquid assets such as stock and cash in hand.

What is asset valuation?

Asset valuation is a way in which the worth of a company, property, security, antique or any other item of worth is valued. An asset valuation is commonly conducted prior to the sale of assets or for the purpose of insuring such assets.

 

The truest form of conducting asset valuations is through property agents that specialize in asset management and asset valuations. Not only will they be able to complete a thorough valuation on your business’ fixed assets but on the company’s liquid assets as well.

It is of utmost importance to depict a true and accurate balance sheet when it comes to asset management and asset valuation. The reason for this is three-fold:

  • To show the current and complete financial position of the business. If a proper financial valuation is not conducted then the verification and value of the company’s assets are not true and this can cause either over or under evaluating the property and its assets.
  • To know the real position of the profit and loss of the business. With regards to ensuring that your business and its assets are insured at the correct value it is important to depict depreciation. To calculate the accurate profit and loss of any business it is important to conduct an asset valuation of the assets and liabilities of the business.
  • To increase goodwill. The positive attitude of the public increases goodwill and the way a business or organization should go about increasing their goodwill is through a proper valuation that will give fair information about the profitability and financial position of a business.

Bearing all this in mind, it is important to find the right property company to conduct your asset management and asset valuation for your business. Do not just choose one at random, make sure that it is a company that has conduction valuations before and that they are reputable in the industry.

For the fairest property and asset valuations and management contact The Property Partnership. As leaders in the property industry, The Property Partnership will ensure that you receive the best valuation of your business for selling or insurance purposes. To find out more about the various services on offer through The Property Partnership, visit their website www.property-partnership.co.za