We take your opponent's response anticipated!
In the cartoon series "Peanuts" there is a recurring motif: Lucy holding the football firmly on the ground and calls Charlie Brown on the kick. At the last moment Lucy sees the ball away, Charlie Brown enters into the void, falls on his pants and Lucy has a big perverse fun. Everyone would be able to say that he should refuse to join Lucy's game. Even if Lucy would have this special coating is not already in the last year (and the year before last and the antepenultimate year) played, so he has gathered enough experience with their character and should be able to predict their behavior in advance.
In the moment when Charlie decides whether to accept the invitation or not Lucy, their behavior is still in the future. This does not mean that Charlie should regard it as uncertain. He should know that Lucy of the possible outcomes - the second prefers - he can shoot or falls. So he should predict that they will pull the ball at the crucial moment. The logical possibility that Lucy will leave in this is, realistically irrelevant. Trusting, would - to the judgment of the British writer Dr. Samuel Johnson about a second marriage to quote - the triumph of hope over experience. Charlie should ignore the possibility and predict that it will inevitably end up on your butt.
To ensure that our clients do not end up on your butt, we advise our clients on the basis of our expertise and our experience particularly in the areas business consulting, tax consulting, expert opinions and accept the fiduciary administration and support them in other areas.
1. BUSINESS CONSULTING
Business Management Consulting, on the basis of a KFW - be financially supported by the KFW coaching. For business consulting include, for example:
- Recommendation on the development of strategies concepts
- Development of management information systems and internal early warning systems
- Profitability analysis
- Preparation of financial statements
- Participation in or acquisition of financial and payroll accounting
- Organizational consulting, which covers in particular the establishment and adjustment of structure and process organization, the internal control system and the City use
- Advice on personnel issues: job descriptions, salary structures, development of bonus plans, advice on the termination of employment, mediation and conciliation.
We advise you on investment projects as well as corporate structuring, creation, conversion, merger and spin-off of companies and solve business management, tax and legal issues, edit the auditor multidisciplinary. It also international aspects are increasingly taken into account. The same applies to the purchase or design of corporate succession. Auditors also take the profitability of individual investment projects and their funding position. They support their clients in the design of contracts, financing and asset management are active in the field. Even in matters of insurance coverage and the operational Altersvsorgesysteme to their clients for advice. In addition, accountants are often used for the rehabilitation of distressed companies. Business management consultancy in Cologne
2. SURVEYING ACTIVITIES
Relying on our professional oath accountants may act as experts in issues of economic management and it can accept orders as an assessor in arbitration. In conflicts, for example through the establishment of appropriate severance payments to departing shareholders - they often the courts added a school trip as a consultant. This experience potential also causes companies, shareholders and individuals, accountants with business justifications of any kind to instruct. Of particular importance in this context, the comprehensive evaluation of companies or parts of companies, mostly in connection with their sale and purchase. Surveying activities in Cologne
Tax is one of the most important areas of the auditors. their qualifications and experience, as well as the often comprehensive insight into the company's conditions make accountants in tax issues for professional legal partners of the company. The auditor provides consulting services in all tax matters. This includes:
- Tax in Cologne
- Preparation of tax returns, Reservations, tax accounting, asset statements
- Clothing under criminal tax proceedings
- Assistance with tax audits and in and out of court disputes with the tax authorities
- Support judicial and extrajudicial in filing appeals to representation
before the Bundesfinanzhof
- Consulting in connection with company restructuring
- Advice in connection with an international context, for example, application of the
Double taxation agreement
- Counseling as part of the inter vivos (donation).
Nearly all business decisions - from the foundation of the ongoing operations through to termination of employment - are associated with tax consequences that companies significant financial burdens can. Therefore, auditors will often have long called upon for advice before making important decisions in the company. Auditors can recommend optimal tax structuring. They show alternatives to both legal status or prior selection of the exercise of the electorate in trade and tax accounting, investment decisions, cooperation and restructuring as well as corporate succession.
In-depth knowledge of tax law and the double taxation agreements enable auditors in the situation, international companies propose appropriate solutions. For this purpose, we can also use links to international networks.
We accept fiduciary duties. Fiduciary duties are fleshed out in detail to. From each individual's statutory mandateAmong the fiduciary activities that perceive auditors include:
- Insolvency Administration
- Safeguarding of interests in the creditors' committee
- Activity as an advisor or board member
- Fact-finding and prevention of economic crime
Requirements for company valuation
The IDW S 1 "Principles for the implementation of company valuations" contains the essential general principles according to which auditors assess companies. The value of a company is given by the present value of the related property, net inflows to the company owners. Since it is assumed that the continuation of business activities, is not the sum of the individual values of the assets and liabilities end enterprise decisive, but rather the value of the source of income. Consequently, the value of the company resulting from its property, financial surpluses for the owners to erwirtschaften.Der corporate value is thus a future success is. In practice methods are applied substantially discounted earnings method or discounted cash flow. The multipliers method can serve the auditors only as a plausibility check.
A reason for performing a business valuation may arise for various reasons. So may be reason for performing a business valuation an entrepreneurship for sale or re-purchase of a business or corporate member. Are also conceivable contractual basis as entry and exit of partners or inheritance disputes.
The auditor can hold various functions when performing a business valuation. It may come as a neutral expert and as determined as an independent expert objective enterprise value. He can determine further as a consultant a subjective decision value. In a conflict situation, however, he can convey as arbitrator taking into account the different subjective interests of the parties concerned.
What principles should the auditors he observed enterprise valuation in the implementation? The IDW S1 initially called the relevance of the evaluation purpose. This means that already must be specified when placing the order in which a function of auditors shall act, as its function to the various relevant assumptions, as well as an associated information affects.
Another principle is the assessment of the economic entity. This principle states that the economic entity may not correspond with the legal unit. Instead, the unit under assessment can also be a part of the enterprise, such as a permanent establishment. It is important to ensure that the totality of all sectors cooperating is detected because all divisions jointly contribute to the future financial surpluses. It is necessary to distinguish between operating and non-operating assets. With the operating assets, which is essential for the continuation, the future financial surpluses of the company that will flow to the owners, mainly generated. In addition, the business assets not necessary to be considered. It includes the company's assets that can be sold freely, without the actual purpose of the company is prejudice. These assets and liabilities are to be assessed taking into account their best possible use of this is the higher value of either the liquidation value or the present value of the financial surpluses, while the remaining surrendered to the non-operating assets in the company. Other payment flow changes are to be considered associated with the ownership of the company. Thus, for a proper business valuation concerted plan balances, profit and loss accounts and financial plans to create. Income taxes are taken into account.
Corporate ratings in AEC Eisele Consulting Cologne. Depending on the order shall be determined from the financial surpluses an objective enterprise value or a subjective decision or agreement value. The objectified company value is intersubjectively unverified future success value viewpoint of shareholders. He is assuming the continuation of the company based on the existing business plan and taking into account all realistic future expectations. This value is used in practice, for example, as an information basis for the purchase price negotiations. If the valuation date being undertaken or are documented in the company measures as expansion investments or investments exist, they are included in the assessment, also to take account of real synergies.These are such synergy effects, which can also be realized without Durchfßnahmen. Overall, when determining the objective enterprise value only the financial surpluses into account, which are available despite legal restrictions and entrepreneurial planning for distribution.
One particular factor which go down in the company's value, is the company's management. It is thus conceivable that the management in implementation of the measures envisaged remain either unchanged or completely leaving the company. In determining the objective enterprise value but a remaining of the current management, or at least the use of an equivalent management is assumed. If a continuation of the company without existing management is not possible, so the enterprise value corresponds to the liquidation value.
In other results in the determination of the subjective decision value. This is calculated on the basis of individual order-related assumptions. So in the evaluation are recognized on those and be their true options to consider had been scheduled measurement date, but not yet initiated or documented in the business plan. In addition, except the guests and the real synergy effects must be considered ie those with the only implement the proposed action seven Versions assumptions are to meet and to include the capital structure in the review. Likewise, a desired change in the management of the company is taken into account.
In the company valuation date the principle applies. This means that even when falling apart this Valuation Day by carrying out the company valuation only the level of information to be taken into account, was present at the measurement date. The accounting principle of prudence is has to observe the requirement of impartiality in the business valuation as the auditor. Considering this accounting prudence but this would bring in a balance. This does not mean that the investor is basically risk neutral.
From reporting the auditor on the company valuation, the assumptions must be clear and fully emerge. This distinction must be made between the assumptions made by management or by third party experts. The company valuation is a complex calculation, in which enter into a variety of interested assumptions. In addition, it is dependent on assessment route selected. In order for the company valuation is highly dependent on the quality and completeness of the information obtained.
Requirements for the preparation of rehabilitation concepts
The requirements for the preparation of restructuring plans by auditors are included in IDW S. 6 A restructuring plan forms the basis of transparent and coherent presentation of the restoration capability of this company. The concept contains both statements about the actual key corporate data, as well as causes and effect relationships and legal factors as well as the measures to be remedial. The concept must be realized. Since such a restructuring plan may be in terms of standards or only part concept completely, it is important already during the commissioning, to arrange the subject matter and the distribution of tasks between the client, auditors and possibly third parties clear. AEC Consulting Eisel created restructuring concepts in Cologne.
The presentation of the company includes the essential cornerstones for the company and data. Depending on their importance to the concept to include this information, the legal and organizational, financial, human, and financial circumstances of the company's performance. This should be presented clearly and simply. This representation is the starting point for drawing up the restructuring plan.
The company's analysis includes the assessment of the situation and the analysis of already occurred crisis stage and the causes of the crisis. The assessment includes external factors that are on the identification of opportunities and risks of the company in the market directionality. Here is the likely evolution of the market and the industry and the competitive situation in the foreground. Here go corporate factors in the assessment of the situation in which the strengths and weaknesses of Unternehmensanalysiert be. It is first of all the assets and financial results of the company to detect and estimate the future development without implementation of reorganization measures. It is also to honor the existing business model in the initial mission critical. In practice, among other things, strengths and weaknesses analysis, scenario analysis or portfolio methods are used for analyzing the company's situation.
Companies that are in crisis through regularly different crisis stages. These stages include the stakeholders, product and sales crisis, the success and liquidity crisis and ultimately insolvency. These stages are not independent, but do not necessarily develop in this order also. As part of the corporate analysis, the crisis stage where the company is located is determined. Because the contents and measures of the restructuring plan are determined thereafter, in which crisis stage, the company is located.
In particular, it is early to determine whether there is already a insolvent. Because if an insolvent is detected, appropriate and quickly realizable measures must be found to ensure that the conditions for a positive prognosis is created by persisting avoid bankruptcy. If this is not possible, the negative prognosis is persisting even generally attract indebtedness insolvency law sense by itself. The auditor must indicate the legal representative immediately thereafter in case of insolvency or over-indebtedness, and this has to be documented, so that the legal representatives have an opportunity to draw the necessary legal consequences, ie an insolvency to provide a resolution. In case of imminent insolvency is an application for insolvency law that under the restructuring should be considered.
Overall, the company's performance in accordance with clause 1 2 HGB has 252 para. Number to determine whether the continuation of the company's activities conflict with legal or factual circumstances. A bankruptcy subsisting forecast, which is directed solely to the estimated solvency during the forecast period, is insufficient.Then the causes of the crisis are to be identified. These can both be within the company and external nature.Only a systematic cause analysis enables managers to develop appropriate remedial measures and to create a going concern assumption.
The restructuring plan includes the model on which the reorganized company aligns. It outlines the main principles of a company that has a viable business model at least one sustainable industry average rate of return and capital adequacy. At the same time it serves to identify a suitable and competitive reorganization measures.Here, the mission statement is the goal of enterprise development, such as an intended production and sales program. The aim of the elderly must be that the company is placed in a position to assert itself on the market and once again attractive to own and foreign investors to become.
An integral part of the restructuring plan is a numerical planning the redevelopment process. The starting point is the situation is and the presentation of the problems and loss areas, focusing not on the description of the current situation, but on the estimation of future development without taking of remedial measures. Similarly, the restructuring requirements are specified.
In restructuring plan sets out the effects of the measures are expected to have on the future assets and financial results of the company. It is important to explain what measures already taken and to what degree this is already realized. A recovery plan may be implemented only optimal if the measures to be considered in its entirety.Therefore, it is important to the recovery plan included as assets and financials plan to create. The starting point are operational partial plans where a plan profit and loss account and a financing plan and a budgeted balance sheet are constructed. The integrated planning should be supplemented by indicators, support the statement on the ability to restructure and represent the appropriate control variables for the degree of achievement of the restructuring plan.
The preparation of the restructuring plan must be documented in working papers. The working papers have to an expert third party enabling them to understand as to which documents, information and assumptions, the auditor has supported. In addition to a declaration of completeness of Auditors has regularly obtain a declaration by the legal representatives of the company, which it assesses the feasibility of the concept and the will to implement terms.
The creation of a restructuring plan is a complex process. Despite the presented requests each restructuring case requires its own professional solution that shows the autonomous solution of the individual case.
PRINCIPLES FOR THE VALUATION OF REAL ESTATE
The principles that have to be observed here are accountants, 10 "Principles for the valuation of real estate" listed in IDW S. The value of a property is the equivalent of the benefit which is expected at the measurement date in the context of the review of the evaluation object occasion in the future. To differ from this value is the price of a property, which arises as a result of negotiations between the parties.
The need for the evaluation of real estate may result from various occasions. There are transactional, accounting-related and other events. Has the review a transaction reference, the relevant investors value terms and the function are of relevance. Here, the auditors usually takes the role of a neutral expert or consultant. In contrast, the accounting-related review each occasion require the application of a particular concept of value.
Other valuation occasions may arise, for example, tax, finance-related or insurance reasons. In these cases, the function of the auditor also an expert or mediator be. The object of evaluation is either a property or a real estate portfolio. The valuation of real estate companies is not regulated by IDW S 10, but falls within the scope of IDW S 1 for business valuation. The valuation of real estate can be done using a variety of assessment procedures. It come discounted cash flow method, comparison method and cost approach into consideration.
Yield-oriented processes are appropriate for the evaluation of such properties, which are suitable to generate an income. The forecasted to then market financial surpluses this review object is capitalized with a risk-adjusted interest rate. When calculating the market conditions, achievable rental income is estimated and it is placed simultaneously on the market conditions, available space. Depreciation is not taken into account and future investments in the property can only be included in the assessment, if these measures are concretised at market rates and adequate. Personal relationships are generally not considered.
As profit-oriented methods are discounted cash flow method for the property Valuation Ordinance, the earnings-based method according to the investment method and discounted cash flow method into consideration. The yield value for property valuation regulation resulting from the capitalization reduced by the land value interest income of the property plus the land value. The income results from the earnings net of non recoverable business costs.The capitalization is effected on the remaining useful lives. The capitalization rate is determined by the evaluation team Real interest rate. It tracks the average assessment of the market participants of property and market-related risks. In addition, risk increases or reductions are optionally considered. Alternatively, the capitalized value of the capitalization can be derived over the remaining useful life of the building plus the over the remaining useful life of withdrawn land value.
The assessment by the internationally recognized investment method, the value of the property is determined by capitalization of the projected surplus of rental income on the management costs by All Risk Yields. This is based on a perpetuity. An explicit calculation of the land value does not take place, since the projected surplus revenue reflects both the income in accordance with the building and the land. The All Risk Yields consists of the risk-free basic interest rate, a real estate-specific premium or discount and inflation reduction. When applying the discounted cash flow method results in the value of the property from the sum of the present values of future recoverable period-related net cash flows. The prognosis can be made only under consideration of uncertainty, therefore they should be limited to a detailed planning periodFrom decade.
After completion of the detailed planning period, an estimated selling price of the property is recognized. To account for the risk of future net cash flows, two methods can be applied, firstly, the risk premium method, on the other hand the security equivalence method. However, the security equivalence method has little practical significance. Also in the property valuation is a publicly traded derivatives in the discount rate on the basis of Chapter asset pricing model would when using a discounted cash flow method suitable in principle, however, retires due to lack of validity of the necessary data from the market risk premiums or betas. Therefore, the determination discuss this interest rate is often used in practice the risk premium method and results from the sum of the risk-free base rate, real estate market specific risk allowance or charge and property-specific risk or discount.
The real estate can also be done using the direct or indirect comparative value method in accordance with property Valuation Ordinance. Here you will consider sufficiently comparable properties in the valuation principle once detected purchase price. The influencing characteristics are observed in the market purchase prices in an appropriate manner and must have come in the ordinary course of business to pass. In order to assess the comparability sufficient, it is advisable to visit the object of evaluation. The comparative method has an important role because of its near Mainz. However, an application is not always possible, since no comparison objects can always be determined.
Another method to evaluate real estate, is the asset value method in accordance Property Valuation Ordinance.Asset value method are always applied when the replacement cost of the property are the price in the ordinary course of business. This is for example mainly occupied one- or two-family houses or even in the case of public property with earmarking. Consequently, the method is based on the assumption that yields the value of the property from the current replacement costs, taking into account the age, condition and other einflüssende circumstances and the situation in the property market.
Special features of the property valuation arising for example when special properties, such as hospitals or hotels.Such properties are strong demand and target groups oriented. The review of special property requires a high degree and knowledge of the respective product and its environment. The consideration of public funding represents a special feature of the property valuation. They are always a to be considered in the evaluation parameter, if they are equally relevant for both the owners as well as for the potential buyer. Thus, the promotion must be connected directly to the evaluation object. The IDW S 10 specifies ways such support should be considered when applying the various proceed.
Another special feature is the review in the absence of comparing the example of structurally weak regions. In this case, the direct comparison method separates a review procedure. In the application of income-oriented method, various value-determining characteristics, such. As to be considered Structural vacancy. The professional practice to document on its work in the framework of the review in its working papers and report in the context of an appraisal report. It should be noted that the IDW auditors with the IDW S 10 Although no abstract, but a supplement to the previously in practice commonly employed methods of property valuation by the hand gibt.Immobilienbewertung at AEC Eisele Consulting Cologne