research institutes
Within the valuation activities we have different activity spheres corresponding to proper industry branches, including the research institutes.
It would be absolutely incorrect to state that there is no difference between valuation of a research institute business and valuation of business of any other enterprise of producing sector.
The research institutes have the following peculiarities:
Innovative activity of the principal consumer of services (or Monoconsumer).
For instance, proceeds of the OJSC "NII" are compared with the proper part of cost price of a typical (principal) consumer. The manufacturing enterprise's needs for such services are determined either by means of the retrospective analysis or by the approved business-plan, related to the industry development, or by the current industry performance. Thus, the Institute's work content must be corrected just in terms of the forecasting of service cost, number of Customers and risk of the Customer's withdrawal from the Contract.
Peculiarities of the valuation process:
While defining the market value of the research institute, we add to our methodology the results of the industry analysis and of the analysis of the whole current situation as to transactions with the Institute's shares. For example:
The informational and analytical bulletin of RFFI for the years 2006-2007 has shown a substantial number of transactions made concerning shareholdings of different research institutes. Transaction objects (shareholdings of research institutes) differ by the activity types, direction, and by the asset composition, the shareholdings realized. Concerning some of them there is some information published in the open information sources, which testifies to actions that were taken by certain persons in order to seize the enterprises' assets. The analyzed information from the open sources makes it possible to assume that the privatization of such objects is realized first of all to acquire their assets, in particular non-movable assets (upgraded land plots), but it is not intended to provide further implementation of their core activities.
Recently introduced and heatedly disputed over amendments to the Education and the State Scientific and Technical Policy Law divided the scientific community into those who agree with it and those who see a lot of disadvantages in it.
Though the state authorities declare that the fundamental research is a state priority, there have already appeared the precedents of attempts to privatize the Academic State Unitary Enterprises.
Besides, the Ministry of Education and Science and the Ministry of Finance stated their negative attitude towards the suggestion of the Ministry of Economic Development concerning removal of a ban to privatize objects pertaining to the academic science sector.
Thus, within the state politics there is no common approach to the problem of the future of the research establishments.
So, it may be concluded, that the information available on the RFFI site is not uniform and transparent enough to serve as the basis for making the grounded corrections as to the analogue objects' price to compare them with the subject property.
Analysis of possibility to use the cost, comparative or income-based approaches to the valuation of the subject property market value or grounding the refusal from their use.
The subject property value is defined by means of considering all the factors that influence the share market as a whole and the analyzed shareholding's value in particular. While defining value there are used the following valuation approaches:
- Comparative approach to valuation.
- Income-based approach to valuation.
- Cost-based approach to valuation.
Other methodological peculiarities and details are presented by the experts of the LLC "CG "Expert" in the subject publications in the corresponding journals.
