Evaluating the vacant land is quite simple our technical team is expert on it. Land value is the value of a piece of property including both the value of the land itself as well as any improvements that have been made to it. This is not to be confused with site value, which is the reasonable value of the land assuming that there are no leases, mortgages or anything else present that would otherwise change the site’s value. Land values increase when demand for land exceeds the supply of available land or if a particular piece of land has intrinsic value greater than neighboring areas.

One of the categories that we are expertise in. Valuation of building or property is the method of calculating the present marketable cost of a building. Valuation of a building depends on the sort of building, its structure, durability, location, size, shape, the width of roads, frontage, types and quality of building materials used and the cost of these materials.

One of the areas that we are specialized on and we have several clients for valuation of the industrial properties.

The basis of valuation for a machinery valuation could be Market Value, Equitable Value or Fair Value. Each of these three bases has its own definition.

The basis of valuation is determined by the purpose of valuation, for example if the purpose of the exercise is to ascertain an expected selling / asking price on the open market, then Market Value is the appropriate basis. However, if a closed (private treaty) transaction is envisaged involving a sale to an identified purchaser and one wants    to determine the fair price to be paid, then potentially Equitable Value would be appropriate.

If the valuation is for Financial Statement purposes, e.g. to determine the balance sheet value of some assets, then the Accounting Standards (IFRS and UK GAAP) dictate that the basis of valuation should be Fair Value.

One of the areas that we are expertise on is the equipment valuation!

The first step in valuing equipment is to understand the purpose of the valuation. This helps you figure out which value is appropriate to use. The three most common categories are:

1. Buying or selling equipment

When buying or selling used equipment, the most common valuations are:

• fair market value
• orderly liquidation value
• forced liquidation value

Which one to use depends on the circumstances of the purchase or sale. For example, a regular transaction between two willing parties usually relies on fair market value, while liquidation value may be involved in a bankruptcy.

2. Insurance

Businesses often need to know equipment values during insurance claims or to ensure they have appropriate insurance coverage.

The most typical values in use for insurance purposes are:

• actual cash value
• replacement cost new
• reproduction cost new

Which one is used affects the premium and depends on the insurance policy.

3. Continued use

The “continued use” category applies to equipment you’re using in your business and have no intention of selling. You may need to know its value for financial reporting or to use the equipment as security for financing.

It’s typical to determine fair market value for such purposes, though some banks may collateralize equipment based on its forced liquidation value.

Valuation of lease contract is one of the field that our specialist are expertise.

A lease is an agreement whereby the lessor (owner of property) allows the lessee use of the property in exchange for lease payments. Operating leases give the lessee the use of property without ownership. Operating leases are sometimes used to initiate off-balance-sheet financing of assets. Capital or Financing leases transfer ownership from lessor to lessee. Under capital leases, the lessee will record the asset at the present value of lease payments not to exceed the fair market value of the asset. The following examples will illustrate certain basic calculations in valuing leases. You will need to refer to present value tables to understand the source of present value factors.

Valuation of concession contract

Valuation of patent or intellectual property