Market value appraisals.

The valuation of a company can be defined “as the process which seeks to quantify the elements that make up the assets or patrimony of a company, its activity, potential or any other characteristic that may be valued”. There is no sense in seeking reliable valuation or appraisal methods - a valuer must have full training on a financial and business level so as not to make glaring errors.

"It is a matter of determining the intrinsic value of a company or business, not its market value or its price". It may be said that the value is a possibility and the price a reality. The objectives of a valuation of this type may also be as follows:

A. Internal reasons, aimed primarily at the company directors; it is of no internal significance, and seeks above all to:

Find out about the situation and/or development of assets/patrimony Verify the management performed by directors Establish dividend policy Examine the possibility of floating a debt Expansion or internal restructuring of capital Legal reasons Inheritance, succession reasons etc. Find out about debt capacity Non-monetary contributions

B. External reasons, motivated by the opportunity or need to verify and demonstrate the value of the company to third parties, i.e. when it is hoped that the company will be transferred, for the purpose of a loan, mergers, demergers, amalgamations, privatisation etc.