Assets that are recorded in the business or company accounts as the list of asset categories which consist of both, tangible and intangible assets. There is an opportunity that these will be brought out for valuation by splitting each item or to appraise the whole business depends on the purpose of use.
- Tangible assets are something that can be visualized and touched for example land, buildings, lease, machinery, equipment, vehicles, furniture, improvement, decoration, raw materials, products during the production process, inventory, trade receivables, computer equipment, etc.
- Intangible assets include trademarks, brand, customer database, software, program, production formula, copyright, patent, petty patent, claims, lease agreement, concession, etc.
- By considering the assets usage in the business, we may identify if they are categorized as core assets and non-core assets, which have implications on the valuation method consistent with the accounting standards, etc.
There are several reasons in order to bring the assets within the business to be appraised such as if there is an adjustment in the accounting structure which may be due to a change in shareholder structure, trading of merged shares at the level that the account will need to be restructured. In this case, the price must be adjusted within the accounting records of all types of assets to be present. Then, record the PPA split account, leaving the difference that is goodwill to a minimum which may be able to search for some intangible assets for further valuation if necessary under the basis of reality, for example, customer account, software, etc.
Property appraisal in preparation to use certain assets as collateral for loans under the Business Security Act 2015, between the collateral provider and receiver is also popular nowadays. Therefore, the assets valuation within the business that is appraised separately will be as popular, especially the intangible assets that are taken out to appraise for the preparation of the list of quick and easy access to funding sources.
However, the appraisal of assets within the SME or Startup businesses to prepare for a roadshow with the capital groups that support the growth of the new businesses is also part of making property valuation for the new business group to form a shape and finally, in the level of business negotiations which is an advantage that must be prepared.