Valuation of economic operations
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The appraisal of economic operations is much more than a simple valuation process; it is a strategic tool that allows entrepreneurs, investors and financial institutions to know the true potential and the real situation of a business in operation. This process is based on the application of technical and financial methods that transform accounting and operational information into an objective value, fundamental for decision making in transactions, refinancing, mergers or business restructuring. At Tecnitasa, our approach focuses on offering an exhaustive analysis, adapted to the specific characteristics of each operation, with the guarantee of approved reports that comply with current regulations ECO/805/2003.
What do we consider as economic holdings?
An economic operation comprises all the tangible and intangible assets that enable a business to generate income on an ongoing basis. This includes not only physical elements, such as real estate, machinery and facilities, but also intangible assets such as goodwill, brand, customer base and know-how, which provide competitiveness.
The main objective of the appraisal is to provide a comprehensive view of the business, considering both its current value and its growth potential, which allows establishing a solid basis for negotiations, financing or investment plans.
> Factors influencing the appraisal of economic holdings
In order to achieve an accurate valuation, it is essential to analyze various aspects that affect the value of the farm. The main factors are described below:
Nature and type of economic activity
The sector in which the farm operates (agricultural, industrial, commercial or tourism) has a direct impact on its valuation. Each activity has its own characteristics and risks; for example, an agricultural operation will depend to a large extent on climatic conditions and the price of inputs, while an industrial activity will be evaluated according to its productive capacity and technification. Understanding the nature of the business is essential to apply the most appropriate valuation methods.
Location and environment of the farm
Geographic location is a key factor: a farm located in an area with high demand, accessibility and little competition will have a higher value. The environment, which includes factors such as road infrastructure, proximity to markets and suppliers, and the economic dynamism of the region, has a significant influence on the farm’s ability to generate income and its attractiveness to investors.
Tangible and intangible assets
The strength of physical assets – such as real estate, machinery and facilities – is critical, but the value of intangible assets should not be overlooked. Elements such as brand reputation, patents, proprietary technologies and stable business relationships add value that often represent a significant portion of the total price of the operation. Proper identification and quantification of these assets are essential for a complete valuation.
Profitability and financial results
Analysis of historical and projected revenues, margins, net income and cash flows provides a clear perspective on the stability and growth potential of the business. Companies with a strong financial track record and a projection of sustained growth are positively valued, as they demonstrate a proven ability to generate future profits.
State of infrastructure and equipment
The state of conservation, modernization and maintenance of facilities and machinery has a direct impact on operating efficiency. An up-to-date and well-maintained infrastructure not only reduces operating costs, but also allows for higher productivity, which translates into a higher valuation. Investments in improvements and technology are indicators of a growth-oriented business.
Regulatory compliance and licensing
The legal framework and the possession of operating licenses and permits are essential elements in the valuation. Compliance with legal, environmental and safety regulations provides certainty and reduces risks, which increases investor confidence and the soundness of the operation. Any irregularity or non-compliance can lead to penalties and reduce the overall value of the business.
> Why is it important to appraise an economic operation?
Performing a professional appraisal offers multiple benefits that have a direct impact on strategic decision making and business operations:
Determination of the real value of the project
An accurate appraisal allows us to know the exact value of the farm, which is essential for sale and purchase transactions, mergers or acquisitions. By knowing the true value, both buyers and sellers can negotiate fairly and avoid over- or undervaluation.
Obtaining financing and business loans
Appraisal reports are essential tools for accessing credit lines and loans. Banks and financial institutions require official valuations issued by appraisal companies approved by the Bank of Spain that guarantee the viability and soundness of the business, which makes it easier to obtain financing under favorable conditions.
Facilitating sale and purchase and transfer processes
An objective and detailed valuation provides the necessary transparency in any negotiation. This facilitates the transfer of business and the purchase and sale, generating trust between the parties involved and ensuring that the agreed price reflects the value of the operation.
Tax optimization and estate planning
Knowing the value of the operation is key to proper tax planning. It allows to calculate taxes accurately and to structure the distribution of assets in cases of dissolutions, transfers, successions or business restructurings, optimizing the tax burden and protecting the assets.
Feasibility assessment economic decisions
The appraisal provides fundamental information on the profitability and sustainability of the business, facilitating the identification of areas for improvement, investment opportunities and potential risks. This comprehensive view is crucial to define growth and adaptation strategies in a competitive market.
Benefits of contracting a professional farm valuation service
Relying on a specialized service such as Tecnitasa’s guarantees an accurate assessment tailored to the specific needs of each business. Among the most outstanding benefits are:
Experience in the business sector
Our professionals have extensive experience and in-depth knowledge of different economic sectors. This allows us to understand the particularities of each operation and apply appropriate valuation methodologies that reflect the reality of the business.
Approved and accurate technical reports
We guarantee the preparation of technical reports that comply with current regulations ECO/805/2003 and are valid before financial entities, regulatory bodies and investors. The accuracy and transparency of our reports are an essential tool for any commercial or financial operation.
Up-to-date and competitive valuations
We perform valuations based on current market trends, adjusting our methods to economic and industry conditions. This ensures that the valuation is competitive and realistically reflects the value of the business in the current market context.
Discover our other appraisal services
In addition to economic real estate operations, Tecnitasa Group offers appraisals of other real estate assets. Its expert team
applies specific criteria for each type of property, adapting to the particular needs of clients. Explore the available sub-services, each valuation is adjusted to the characteristics of the asset.
Latest news on economic exploitation
Check our blog for up-to-date news and specialized articles on the sector. We offer information on trends, market changes, regulations and advice for owners and investors in this segment.
At Tecnitasa we offer a professional appraisal service backed by more than 40 years of experience and a deep knowledge of the market. Our commitment is to provide accurate reports that serve as a basis for strategic decisions, financing and business negotiations. If you would like to obtain an updated valuation of your economic operation, contact us for a personalized, no-obligation quote.
Frequently asked questions about farm valuation
What documents are needed to appraise an economic operation?
Balance sheets, income statements and cash flows for the last three years, licenses, operating permits and technical data on infrastructure and equipment. Lease agreements, commercial agreements and regulatory certificates may also be requested.
How long does it take to appraise an economic operation?
Depends on the size and complexity of the business. It includes documentation gathering, inspection and analysis. At Tecnitasa we guarantee an agile and accurate service.
Is the appraisal valid for obtaining bank financing?
Yes, our reports comply with ECO/805/2003 regulations and are approved and therefore accepted by banks and financial institutions.
How are intangible assets such as the brand or the customer portfolio valued?
Through future profitability analysis, market comparisons and brand positioning studies, estimating their impact on revenue generation.
How much does a professional farm valuation cost?
The price varies according to the size and complexity of the business. We prepare customized quotations without obligation.
