Asset / Property Valuation
Valuation is the science of determining the present value or worth of an asset. With valuation, we will identify the right price that an asset should be bought or sold. This is beneficial to both the buyer and the seller because it ensures that the buyer does not overpay for an asset and that the seller does not undersell his asset. Beyond knowing how much to buy or sell a property, valuation is essential in different aspects of your business life.
The Importance of Conducting Asset Valuation
- To apply for loans/credit facilities or insurance.
When applying for a loan/credit facility, valuation is important to determine the correct value of the collateral assets. Banking institutions must also conduct a valuation before approving a loan to evaluate the value of the assets that would become loan collateral. When applying for insurance of your asset, valuation is important to determine the right value of the insured assets. Insurance companies must also carry out a valuation of the assets to be insured to evaluate the value of the assets.
- To calculate taxation accurately.
Valuation is essential to avoid taxation litigation. This is because a company’s taxes depend on the value of its assets. A company might own various properties, and valuation helps determine taxes for such assets.
- When buying or selling company stocks and shares.
When it comes to stocks and shares, a financial statement is crucial to making any buying or selling decisions. A financial statement cannot be accurately prepared without a valuation of the company’s assets.
- To determine the price of the target company in an acquisition.
This ensures that the acquirer buys at the right price, and nobody walks out of the deal feeling cheated.
- To facilitate asset declarations.
Now a common practice among public officials, asset declaration is deemed incomplete without a valuation as professionally determining the worth of the assets declared is important.
- To establish a property’s fair value before it is compulsorily acquired by the Government.
As cities and towns expand and undertake improvements to roadways, railways, sewer and power lines, communications, and other systems, the Government must often secure or acquire access to private land. Before acquiring any property, the Government must conduct a valuation to establish its fair value and determine compensation for the owner.
- For visa and immigration purposes.
Suppose you want to apply for a student visa or a visa for settlement to countries like Canada, Australia, the United Kingdom, etcetera. You will be required to submit a Property Valuation report as a supporting document. A property Valuation Certificate/Report shows your financial strength within your home country. We will establish the values of your properties and deliver a valuation report within the approved timeline.
Kene Onuora Consulting has a team of professional valuers ready to conduct your valuation speedily and professionally. Having completed over 2,500 valuations across Nigeria, we understand how to work with your timeline and deliver an efficient job. Some of our clients include First Bank of Nigeria, GTBank PLC, Access Bank, NNPC, and Total Energies Marketing Nigeria PLC.