Legal information

Article introduction: Which evaluation method is most beneficial to the enterprise when it comes to enterprise demolition?

1. Evaluation determines value

In the practice of enterprise demolition, the evaluation method is closely related to the value of the enterprise. Even if they are all appraisal companies entrusted by the appraisal unit, due to different selections of appraisal methods, the appraised values ​​may be very different.

2. Industry monopolies are facing demolition

The Yingting Demolition Team once represented a company that produces spare parts. Now there are only two companies in the country that can produce such spare parts, one is a state-owned enterprise and the other is a foreign-funded enterprise. The case that Ying Ting represents is a state-owned enterprise, which has an industry monopoly. Let’s talk briefly about the circumstances of this case.

3. Negotiations between the enterprise and the expropriator failed.

At the beginning, when the enterprise negotiated with the expropriation unit, the expropriation unit did not pay enough attention to the nature, prospects and industry monopoly of the enterprise, and had to evaluate the value of the enterprise based on the cost method. In this case, compensation can only be made in accordance with certain market rules based on the loss of factory buildings, land, and suspension of production and business.

4. Must be evaluated using the income approach

Ying Ting proposed that compensation must be based on the income law. Why? Because this enterprise is not a production and processing enterprise, not a retail enterprise, nor a breeding farm. The company's overall estimated profits are uncertain and it is growing slowly. Because of the industry's scarcity and monopoly, it is difficult for similar companies to compete with this kind of company after ten years of growth. Therefore, the added value and enterprise value of the enterprise are also increasing continuously.

5. Using the income method to evaluate is most beneficial to the company

For such enterprises that are very promising for domestic development, the market income method should be used to evaluate their value and losses due to suspension of production and operations.

Yingting reminds you:

Since the compensation types and compensation standards vary from place to place, generalizations cannot be made. If you have any questions, you can consult a lawyer specializing in corporate land acquisition and demolition, or ask a lawyer to intervene and use professional legal knowledge to help you analyze and solve the problem.