TOP 3 RISKS WHEN DISPOSING PRICE APPRAISAL WHEN DECISION ON INVESTMENT OF ENTERPRISES

TOP 3 RISKS WHEN DISPOSING PRICE APPRAISAL WHEN DECISION ON INVESTMENT OF ENTERPRISES

Every day investors, business owners always have to make strategic decisions to maintain and develop their work as well as their businesses. Therefore, knowing the real value of any property, real estate, real estate, project is a prerequisite and the basis for making an accurate decision.

The following are the TOP 3 risks when an Enterprise ignores the valuation of property, real estate, real estate and project types.

For real estate valuation.

Unlike stocks and bonds, real estate is one of the assets and a form of investment that is not too new in Vietnam market as well as in the world. However, the big difference of real estate assets compared to stocks and bonds is in liquidity, the technical analysis requirements are also very different.

The biggest barrier to the real estate market is access:

• Database sources focused on planning and markets.
• The database is not transparent and accurate.
• Each company builds its own internal data source.
• This leads to "gaps" in analyzing and determining the true value of assets.
• Besides, planning information is not publicly accessible.

From the perspective of buyers, investors, business owners, the biggest risk is that the transparency and accuracy of asset information cannot be anticipated. Each investor has their own real estate valuation methods according to each persons methods with different purposes and based on different desired effects.

So determining where and how information is provided is always the "variable" that every business depends on the ability to access the information. The more you have access to the original sources of information, with the authority to decide and exactly how much the ability to make investment decisions will be accurate and achieve the desired results. But not everyone can do it, so they usually rely on banks, third party intermediaries to guarantee and typically appraise property prices through the third party providing valuation certificates. .

For valuation of typical intangible assets is the brand.

When buying - selling or acquiring a business, pricing is more complex and there are many factors that you need to consider when evaluating opportunities:

• Financially:

1. How long has the business been operating?
2. What is the trend in total income and net income in the last 1-3 years and in the last 3 months?
3. What is the cost structure and financial history transparent and can it continue to operate, if there is a gap then what is it?

• In terms of administration:

1. How are the responsibilities of the business owner and the core team running the business?
2. How does the business own the professional team, how does the operating model need to change?
3. Does the business possess all the required licenses for its operation?
4. Is there a trademark policy violation?
5. Are there any special or special advantages?

• Field:

1. Industry competition, how can the industry category improve, upgrade or develop more in any direction?
2. What are the potentials and barriers to entry into this field?
3. How are trends in this field developing, are there opportunities, risks or future directions that will help this sector explode?

• Customer:

1. Where is the revenue of the business?
2. How much does it cost to acquire 1 new customer?
3. Does the companys product model have stable or volatile customer base, will it create loyal and lifetime customers or monthly, weekly and daily?
4. Report the data of customer details, take care and advertise new products to them?

•  Market effect

1. In the manner of most leading experts, investors should not be dependent and dominated by the market, but also should be concerned with the changing trend of the merger and acquisition business directly.
2. As the market continues to grow, formalize and mature over time, more and more customers will be attracted to the playground, and the needs of businesses will increase.
3. Leading the competition to get potential information is very high, but all in just two main things:
4. The enterprise creates its own information engine and makes decisions based on this system. By the method of an individual or an organization.
5. Using an official and committed source and guarantee from a third party.

The last words - About valuation.

Looking back at what we have discussed, the bottom line is an assessment of the value of an asset to make a buying or selling decision.

And above are the steps to check and redefine the information. It is always a simple rule and is the habit of true investors: "Collect all the information you need for your valuation and verify it as thoroughly as possible".

From the perspective of the seller, preparing the records to publish the full statistics of these figures also helps the buying and selling process take place faster and with less hassle.

For advice please contact:

Indochina International Investment & Appraisal Joint Stock Company (INA)

• Address: 121 Nguyen Van Troi, Ward 12, Phu Nhuan District, Ho Chi Minh City
• Hotline: 0934 252 707 / Email: info@inavn.vn