Tuesday, March 31, 2009

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The estimated real estate - part

Regarding the estimated real estate, we can refer to various methods of calculation that we discuss in the course of several episodes. One of the simplest methods used in the estimation of properties is the "comparative". It consists essentially in verifying market transactions in respect of goods similar to that considered and allocated in its immediate vicinity. The average price of the good current reference is derived from those that characterized the transactions mentioned above.

The average price is usually then multiplied by a parameter K which expresses the fact that the property taken in cosider has characteristics that qualify it as above or below the average (think for example the state of maintenance of such property that could be "above average" and then the K is> 1 or "below average" and then the K will <1).

The factor K depends in principle by: objective characteristics of the property (fittings, equipment etc..), location (availability of services), the material state (condition), legal status (free, leased ect.) competitive position (commercial properties).

The estimated real estate - part

Monday, March 30, 2009

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The company valuation

The company valuation is a hot topic in today's economic world. The interest in this activity is also strong growth in the light of a situation characterized by strong market transactions in the field of special operations (acquisitions, restructurings, transfers, splits, spin-offs, etc..) due to a restructuring of corporate balance following the crisis of global markets.
All this is making some news in the field of the theory of company valuation, adding to traditional assessment methods supported by a large and well-documented theoretical doctrine, methods for estimating the value based on theories not as solidly documented and mature.

The objective of the business is to determine the theoretical value of the economic capital of a company to provide relevant information for special operations such as capital increase, share transfer, mergers, etc.. or even as a result of statutory duties.

The main stages of concern the selection and application of valuation methodologies are appropriate from those suggested by economic theory and practice professional located in this area, application methods, eg finance, stock market multiples of comparable transactions or , income, etc..

The company valuation leads to the drafting of an appraisal more or less articulate in which the estimator, estimated the property identified, describe the purpose and characteristics of the estimate, the assumptions and the evaluation process on which it is based, the methodology applied in the evaluation of the company and its conclusions of value.

The company valuation is carried out in many contexts and with as many purposes. In principle we can say that it is performed by a hand at special operations (transfer of undertakings, sale of shares, sale of a business, corporate transformation, transfer, divestiture, business rental, corporate restructuring , revaluation of investments, entry of a new partner, capital increases, surcharges, court proceedings, arbitrations, court expert, demand for guarantees for loans, impairment testing, evaluation and recognition of intangible - Trade marks and patents, etc.-resulting in estimated fair value of the purchase price allocation (PPA), Verification of compatibility of the estimated economic capital etc..) On the other hand however it is becoming an increasingly routine for measuring Past performance and future.

From this point of view tends to consider the value of holding on the basis of future prospects and on the basis of expected returns and risk profiles of business initiatives to be taken. The key word which is built on the company's estimate is therefore the word "projection". The projections are in fact the basis on which the forecasts are constructed, which in turn are the basis on which the company builds its own commitments to third parties.

Whatever the reasons for which an assessment is made of an undertaking, the report of the assessment shall be reflected in a document which is technically called "appraisal". The appraisal is prepared in accordance with a scheme that in principle can be summarized as follows: identify the properties estimated, the estimator will describe the purpose and characteristics of the estimate, the assumptions and the evaluation process on which it is based, the methodology applied in the evaluation of the company and its conclusions of value. So we say that the lineup of the steps to follow can be summarized as follows:
-Definition of the objectives of evaluation and recipients of the report
-Definition of assessment and analysis on domionio (or determining the scope of the assessment)
-economic context in which the company operates.
-analysis of policies and strategies
-Historical Analysis of the results of the budget.
-Defining the date of the valuation
-Choice of assessment methods and parameters indicating the reasons for the choices.
-Performing calculations and checks. Considerations on the role of personal assessments of estimation. his is a very important point because one of the problems that emerged in the past is that is made too often resort to personal evaluations and too little in quantitative methods. The personal assessments are an essential part PEL estimation process, since it is the individuals to make the estimate, but bosogna consider very seriously the problem of personal bias. For example, several studies were found in the fact that the estimates made by those whose interests were coming under greater caution, proved to be distorted compared to what would otherwise have been.
-Sensitivity analysis of the results, scenario analysis, considerations of the likely error rates of the estimates. Conclusions-

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The estimated insurance quote estimated

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The estimate insurance quote

Tuesday, March 17, 2009

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The real estate company valuation and bankruptcy

The property valuation is a very complex because it requires both an analysis of the actual characteristics of the property that a number of external factors.
The value of the property is in fact influenced by:
-land factors
-regularity of the original building (there is at least partially?)
-rental scheme
-Buildable scheme (as in the evaluation and how it might evolve over time)
-political risk (potential or restrictive legislation that may change the destination areas considered)

The methods used for real estate appraisals fall into two major groups: the direct and indirect.
Direct methods can be used when you know the parameters relating to goods similar properties and consistent with those being evaluated.

The valuation of properties are in essence:

-synthetic method-comparative-cost method of repurchase
-cost method of reproduction
-pricing method
-processing method of discounting income
Let's follow the comparative method:

Monday, March 16, 2009

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Bankruptcy is prepared by a bankruptcy court and directed to liquidate the insolvent assets in order to distribute the proceeds among creditors according to the principle of equal conditions, subject to the legitimate reasons for refusal. From an operational point of view it appears as a process by which the "corporate system" is broken down and cleared nelòle its elementary components in support of creditors.
From various points of view this procedure is similar to the operation of voluntary liquidation and it is even more if we are going to verify that the purpose of determining capital settlement that the HERITAGE flows from the algebraic sum of values \u200b\u200bno longer linked in functional terms, in what has come to stop all activities. The forced liquidation
apply valuation methods similar to those mentioned for the voluntary liquidation even if the nature of the insolvency procedure is necessary to refer to a complex regulatory environment (bankruptcy law) that requires some differences in the principles of assessment and quantification of corporate assets.
In general, the principles of asset valuation are those of the realizable value of assets, but applied in the bankruptcy, with particular criteria of prudence in the past, that is the policy of the investigation ordered debts and probable extinction.
Regarding activities, the criterion of realization, can be formed by the realizable value derived from the market or replacement value or reproduction, in any case, the realizable value should be applied to both the possibility of piecemeal sale of assets than that of the global supply of functional areas or persons, in view of better realization of the assets.
For liabilities, it is necessary to extinction of the debt raised, following the timely ascertained performed in the verification of the passive state, both in relation to the type of debt that the category of creditor (mortgage, pledge, oriviolegaito, unsecured), and quantification of any potential liabilities posed (not recorded in the accounts to be in litigation or possible). Actually, in professional practice, very raraente are valued as liabilities not subject to transfer (but simple determination to be the formation of the passive state): the evaluation is confined to the post office assets capable of transfer.
A special case is given in the bankruptcy proceedings to transfer from the transfer of business: in such circumstances, the goodwill may be nonexistent or present, and therefore transferable.
In the first case the split sale of the company does not have particular problems in valuation As the breakdown of the business requires estimation of the values \u200b\u200bin the absence of goodwill, which is believed to enjoy during reset after the management company failed. In this case fails to make a badwill, merely to highlight the activities singles originators. If, however, is
found a value of goodwill, it is convenient to obtain the best soddisfaciemnto creditors, continue to realizations in block of the business, for which the guardianship is activated in order to obtain estimates of the economic capital of the company (the company valuation is usually carried out by an assessor who is specifically assigned to prepare a technical report called appraisal.
often start in tale circostanza, viene valutato emipicamente in base agli elementi oggettivi, che in sede fallimentare sono spesso carenti: si pensi all'importanza del volume d'affari, che rappresenta uno dei pochi dati certi, sul quale fondare considerazioni di valore. Il voume d'affari appare infatti come un dato non inficiato dalla negativa gestione (e può dare indicazioni tendenziali di quello che potrebbe essere l'utile dell'azienda se fosse getita in modo tale da assicurare condizioni di normalità di funzionamento e di positività dei risultati).
In tale contesto sono comunque applicabili anche i metodi tradizionali di valutazione d'azienda, in particolare i metodi patrimoniali e misti (agevolati dalla presenza di un inventario fallimentare, predistosto by the editor and guaranteed by the installation of the seals on the seat of the goods). Are more difficult to apply the methods and financial income for the negativity of historical data and the uncertainty of forecasts for the future, the companies failed necesitando of profound restructuring.
E 'therefore important to note that before arriving at the estimate of the value of the company, the expert quantify the costs of restructuring and corporate turnaround and deducts from the total value.
The bankruptcy laws governing the sale of the company (even if temporarily not working) art. 105 LF, leaked its preference for the realization of the block or its branches, because the operation which, in the best soddisfacimneto of creditors, is reallocated more desirable solution to the crisis of the business.
If the firm is declared bankrupt, the business unit can be maintained only by adopting appropriate forms to avoid the dissolution of the hyperlink function that characterizes it: the purpose is to preserve the integrity of the business, especially as a production unit.
The company shall not terminate with the declaration of bankruptcy, could the legal system (not just in bankruptcy) to react to the break-through formulas that make possible temporary solutions, such as the rental company or a branch, even during the procedure (Article 104-bis LF), or the provisional budget (Article 104 LF), in order to balance Maten fencing for manufacturing the compound. With the declared insolvent in fact, the court may order the 'Provisional' (continued operation) on a proposal from the liquidator, after hearing the Bankruptcy Judge and the creditors' committee (or individual, whether he is prepared at the same bankruptcy), including by rental company or a branch of it. The tenant has the right of first refusal in the event of a sale of the detector.
Within 60 days of preparation of the inventory, the trustee prepares the program to clear. Is presented to creditors and the GD (Bankruptcy Judge). After approval, proceed with the sale of goods, company or business units, assignment of receivables also a fiscal second competitive methods (such as public auction). The SG can terminate the sale if there are serious and justified reasons, on the application of the bankrupt or the creditors' committee, or if better offers.
The draft is prepared by the asset allocation becomes executive editor and if, after a period of 15 days, lenders offer no complaint. Otherwise the program becomes enforceable after a provision of the contested amounts on which the court decides. In breaking down loans collateralised prevail prededucibili loans, these loans take precedence over privileged (pledge, mortgage), and last you have the unsecured creditors, subject to creditorum level playing field (in practice, will be met in equal measure on the percentage of credit due to them).
The rule on liquidation of assets in bankruptcy is codified in Article. LF 107, which governs the rules of sales: Despite the complementary relationship that binds the company's assets is more intense in nature than the simple sum of goods in bulk tranfers between the type of sales permitted, however, inspired by criteria of competitiveness, become available as well at auction, offers private, as typical cases of sales bankruptcy, corporate complexes, whose final act is still a measure of a judicial nature.

Wednesday, March 11, 2009

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Ratings of companies on the occasion of composition

composition with creditors may exercise carried out with various types of agreements including:

- "arrangement with taker" ; is created when a taker offers its own shares of the company's interested in the composition proposal.

- "arrangement with the sale of goods" ; occurs when the debtor "puts on the plate" its existing assets at the date of the proposed arrangement for the payment of liabilities.

In general it can be considered agreed with the taker implies preservation of the company through asset restructuring, and agreed with the transfer of assets requires the cessation of the enterprise and therefore the clearance.
In reality there are intermediate situations in which we will not dwell here.

When choosing the arrangement with taker and when the one with the disposal of assets?
Well, we say that we must analyze the causes that have led the company to a situation of suffering and understand, in this situation, what is the degree of suffering and if you can put in place measures to resolve the 'impasse. If

the crisis is irreversible, probably the only workable solution is agreed with the "supply of goods" and the subsequent liquidation of the company.
If there is possibility of rehabilitation, it is necessary to make a comparison between the economic capital of the company operations, net of restructuring costs, with the value obtained from the liquidation of the business to understand the cost-effectiveness of different alternatives.
more ...

Monday, March 9, 2009

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The evaluation of companies in liquidation ... these days ... The estimated insurance quote

The process of liquidation and its aim is the dissolution of the Company's assets.
It constitutes the last act of the company.

many types of liquidation exist?
Well, we can clessificarne basically two types: the voluntary liquidation and compulsory settlement.

Voluntary liquidation is decided directly by the company, but the force is made pursuant to any provision of law.

However, in the event of liquidation, the company converts the various activities in cash through a series of actions such as the sale or collection, and
liabilities extinguished through the repayment of debts.

What are the factors to be taken into account in this type of evaluation?
Let's say the first thing to consider is the fact that the company's assets is no longer an organized system of inputs, and then he lost that part of the value that comes from being "an organized system." It is therefore not quantifiable at replacement cost.
It is not even exploitable as working capital, because the various parts of the system are no longer part of a "unified and working together."
The individual parts are relevant only insofar as they are assessed on a capital autonoma.Il clearance is therefore constituted by working with independent exchange value and expense items that are supposed to achieve outputs in the monetary obligations to be fulfilled . Following

Thursday, March 5, 2009

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ESTIMATE PRIOR INSURANCE




Abstract The determination of net asset value and burden of the insured.
Italian legislation on insurance against damage states that if the insurance covers only a part of the value that it had secured at the time of the accident the insurance company is liable for damages in proportion to that part (proportional rule, Art. 1907 cc and art. 21 of the General Insurance).
E 'is therefore clear that the insured has a serious responsibility, complicated by the fact that phenomena such as inflation and technological innovations make it extremely difficult to follow the trend in asset values, whether the replacement cost (new value) or value (value of use to the State).

Because the previously assessed

To overcome the drawbacks of these you can take out a policy of "Insurance with the Declaration of Value", or rather a policy where the insured values \u200b\u200bare derived from an estimate (estimate insurance quote) developed by a firm of independent estimates, Comapagnie recognized by insurance and has proven over the years seriousness and professionalism.
There is therefore the Italian insurance market a proven tool for years that every day is more widespread and that it is proposed to overcome any challenge to a prior, in case of accident, on the fairness or otherwise of the values \u200b\u200bdeclared in the policy.

Estimated Benefits of Preventive

The previously assessed has many advantages, including:

· The certainty to ensure the real value of goods and avoiding any unnecessary additional expense due to Overinsurance or at risk, not less likely, of underinsurance.
· deleting explicit condition for the application the proportional rule, with the consequent certainty of a fair compensation which takes account of the real value that the goods were insured at the time of the accident.
· The settlement calls for the damage being exempt from the expert assessment of the seniority of the goods.
° Availability of an inventory of assets that gives a photograph a 360 degree view of business reality and estimated that it constitutes a valuable tool for knowledge purposes interior.


Running Estimate

the appointment of the Company to perform a physical inventory analytical estimate of the assets of the insured (except of course land) and emits an expert report (First estimate) that is delivered to the customer.
is then carried out by technicians an annual survey on the property in order to detect and assess new investment and / or transfers of assets and any disposals that occurred during the period (Estimate Update).

Further advantages of Estimate

The expert report of previously assessed contains a detailed inventory (valued for insurance purposes) of property to be divided and defined areas for the insurance companies (buildings, machinery, plant, equipment, data processing machines, etc.)..
It must be stressed that the valuation of assets by independent consultants has two advantages: first absolute objectivity
operational
• Do not have to involve the staff of the Society in a project that normally takes a considerable amount of work.