Our Approach

The various approaches to valuations and business appraisals include:

Direct Comparison Approach

Comparison of the property being valued to similar properties that have been sold in arms - length transactions or are offered for sale

• Depreciated Replacement Cost (DRC)– involves depreciation which refers to adjustments made to the cost of an equivalent asset to reflect any comparative obsolescence (such as physical deterioration, functional or economic obsolescence) that affects over the remaining life of the subject asset at the valuation date with its expected total life (economic life of the property).

Income Approach

• Discounted Cash Flow Method - involves forecasting future cash flows from the property being valued, based on precisely stated market based assumptions
• Income Capitalization Method - capitalizing a "normalized" single year net income estimate by an appropriate yield

Residual Method

The residual method involves assessment of the value of the scheme as completed and deduction of the costs of development (including developer’s profit) to arrive at the underlying land value.