Services - Assessment of companies and assets

Business assessment

• Corporate assessments: for bank use and guarantees; accounting registration and financial reports, listing on the Stock Exchange; liquidation and insolvency.
• Statutory assessment: for duties and taxes, mergers and acquisitions.
• The public field: governmental fields, local authorities, education.
• Acquisition/Sale
• Taxation
• Ongoing projects
• Property portfolios
• Pension funds

ANEVAR Assessments

The assessment classification according to the purpose of the assessment report elaboration:

• Assessment for sales
• Assessment for acquisitions
• Assessment for guaranteeing credits
• Assessment for mortgage credits
• Assessment for taxation
• Assessment for financial-accounting reports
• Assessment for sales-purchases
• Assessment for mergers (exchange)
• Assessment for liquidation
• Assessment for insurance
• Assessment for solving litigation
• Assessment for expropriation
• Assessment for emigration
• Assessment for input in kind
• Assessment for the establishing of the goods value at the customs

Assessment for sales-purchases, mergers-acquisitions or exchanges

In the conditions of a stable economic progress, the investment value for real-estate properties is close to the market value. When the economy is in transition, as it is in Romania, as far as the real-estate market is concerned, there are real unbalances between supply and demand. Under these conditions, from the perspective of the buyer or of the seller, only a specialist evaluator can highlight the strong points, as well as the weak points of a real-estate property, thus bringing a justified material support for the ongoing negotiations regarding the changing of the owner. As a matter of fact, in other countries, more advanced from the real-estate market perspective, no one starts the procedures for exchanging, selling or acquiring a real-estate property without first turning to the services of a specialist evaluator.

Assessment for guaranteeing credits

The subject in the assessment of credits is the determining of the market value. Banks grant credits after the performance of risk analyses, and these credits represent a percentage, established by the credit officer, of the market value of the real-estate property submitted for guarantee purposes.

The evaluators accepted by the banks tend to under evaluate the real-estate properties submitted as guarantees, which leads to difficulties in obtaining the credit, or the obtaining of a lower credit than the requested one. This must be understood from the perspective of the fact that in case the credit must be recouped by selling the real-estate property set as guarantee, the bank risks a forced sale, in a limited time, the obtained price usually being lower than the market value of the respective real-estate property.

For this reason, it is advisable that in addition to the evaluator accepted by the bank, the client should turn to the services of his/her own evaluator to determine the market value of the real-estate property, so that in the end the client can engage in a reasoned negotiation with the bank's evaluator and the credit officer.

Assessment for emigration

The assessment report of the real-estate properties owned by the physical entity beneficiary who wishes to emigrate, elaborated by an authorized evaluator, is perfectly valid before the authorities of the country where the beneficiary wishes to emigrate, in order to bring proof of financial means. In these cases, the subject of the evaluation also is the assessment of the real-estate properties' market value.

Assessment for solving litigation

The just compensation in cases of expropriation, proven deception of the buyer, assessment of damages arising from property deterioration, partitions, are only some of the circumstances where the performance of an assessment is necessary.

Assessment for insurance

The subject of assessments for insurance is the reconstruction value (the cost of the integral, identical rehabilitation of the real-estate property after destruction). The compensation value implies the granting of compensations within the limits of the reconstruction costs, without including in these costs the improvements or extensions made to the construction or the facilities.

One who buys an insurance will obtain a percentage of the insured amount, due to the fact that in most cases the asset is not entirely destroyed, only partly, in which case it is necessary to perform a correct assessment, starting with the replacement cost (that represents the estimated cost for building with the current prices on the date of the assessment, a copy, an exact replica of the assessed building, using the same materials, regulations for constructions, architecture, plans and man power quality, out of which there are deducted all the deficiencies and the depreciation of the building).

The person who intends to buy insurance should keep in mind the need to insert additional clauses at the conclusion of the policy, because in the practice of insurance agents they use the market value, which, under the circumstances of our transitional economy, is lower than the reconstruction value.

Assessment/reassessment for the global taxation

In Art. 253 of the Fiscal Code (The calculation of the taxes owed by legal entities) the following provisions are made:

• (1) In the case of legal entities, the tax on built properties is calculated by applying a taxation quota to the building's inventory value.
• (2) The taxation quota is established by the decision of the local council and it can be between 0,5% and 1%, inclusive.
• (3) The building's inventory value is the value of the building entering in the patrimony, registered in the accounting of the building's owner, as per the current legal provisions.
• (4) In the case of a building whose value was recouped integrally by amortization, the taxable value is reduced by 15%.
• (5) In the case of a building that was re-assessed as per the current legal provisions, the building's inventory value is the value registered in the accounting of the owner immediately after the re-assessment;
• (6) In the case of a building acquired before January 1, 1998 and which was not re-assessed after this date, the taxation quota for the building is established by the local council between 5% and 10% and is applied to the building's inventory value, until the date of the first re-assessment, registered in the accounting of the legal entities.

Therefore, all the legal entities that own real-estate must assess it in order to establish a reduced taxation quota.