Valuation & Financial Services:

+ Property Valuation
+ Cash Flow Analysis
+ Cost BenefitAnalysis
+ Socio-economic Analysis
+ Capital Investment Program (CIP)
+ Finance Operation Plans (FOP)


Property Valuation:
  • Real estate appraisal, property valuation or land valuation is the process of valuing real property. The value usually sought is the property's market value. Appraisals are needed because compared to, say, corporate stock, real estate transactions occur very infrequently. Not only that, but every property is different from the next, a factor that doesn't affect assets like corporate stock. 
  • There are three general groups of methodologies for determining value. These are usually referred to as the "three approaches to value" which are generally independent of each other:
    • The cost approach
    • The sales comparison approach and
    • The income approach



Cash Flow Analysis:

 Cash flow analysis can be used to address a variety of questions regarding a firm's cash flow dynamics:
  • How strong is the firm's internal cash flow generation?
    • Is the cash flow from operations positive or negative?
    • If it is negative, why?
    • Is it because the company is growing?
    • Is it because its operations are unprofitable?
    • Or is it having difficulty managing its working capital properly?
  • Does the company have the ability to meet its short-term financial obligations, such as interest payments, from its operating cash flow?
    • Can it continue to meet these obligations without reducing its operating flexibility?



Cost Benefit Analysis:
  • Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile. These projects may be dams and highways or can be training programs and health care systems.
  • A simple return on investment (ROI) strategy is one of many types of investment information that would go into a financial decision. A cost benefit analysis is more than a return on investment strategy, there are many other factors that influence a decision.



Socio-Economic Analysis:
  • A socio-economic impact assessment examines how a proposed development will change the lives of current and future residents of a community. The indicators used to measure the potential socio-economic impacts of a development include the following: 
    • Changes in community demographics 
    • Results of retail/service and housing market analyses
    • Demand for public services
    • Changes in employment and income levels
    • Changes in the aesthetic quality of the community. 
  • Quantitative measurement of such factors is an important component of the socio-economic impact assessment. At the same time, the perceptions of community members about how a proposed development will affect their lives is a critical part of the assessment and should contribute to any decision to move ahead with a project.



Capital Investment Program (CIP):
  • A Capital Investment Plan (CIP) provides a detailed understanding of anticipated investments into tangible capital assets.  These assets include basic facilities, services and installations needed for the functioning of the community such as bridges, roads, water and wastewater systems.
  • Essentially, the plan provides a link between a municipality, school district, parks and recreation department and/or other local government entity and a comprehensive andstrategic plans and the entity's annual budget.
  • The benefits of CIP are;
    • Allows for a systematic evaluation of all potential projects at the same time.
    • The ability to stabilize debt and consolidate projects to reduce borrowing costs.
    • Serve as a public relations and economic development tool.
    • A focus on preserving a governmental entity's infrastructure while ensuring the efficient use of public funds.



Finance Operation Plan (FOP):
  • It’s a financial plan outlining the revenues and expenses over a period of time. A financial operating plan (FOP) uses past performances, incomes and expenses to forecast what to expect in the following years. It then incorporates past and recent trends into the planning so as to most accurately forecast what is to come. It will define goals for areas such as budgeting, sales, payroll, etc, as well as create a cash flow projection
  • A good financial operating plan will need to be ammended and updated due to any extraordinary events relating to finances, as well as to see if it is still relevant to the current situation. If prepared and ammended accordingly, an FOP can be a useful tool in creating and managing the budget, improving control of management operations and ultimately creating profitability