Table of Contents
Definition of reproduction value
The reproduction value is the sum of the individual procurement prices of the assets of a company that are essential for operations and shows what it would cost to create. He will be part of the Company valuation determined and in practice also referred to as the intrinsic value. Elements of the reproduction value can be the following cost values:
The production value on the cost side
The production value, which relates to the cost side. If you put the individual goods at the values that they had at the time of their acquisition or manufacture, one arrives at the acquisition value or production value based on past values. However, it does not say anything about how much capital would have to be expended today to build the company in its current state. Since the buyer of a company wants to know precisely this, the production value is not a suitable measure of value for him.
Full reproduction value
The full reproduction value, which represents the replacement costs on the valuation date, i.e. the daily values at the time of the transition or sale of the company. If the individual assets are valued in this way, their total results in the full reproduction value. For the valuation of a company, the reproduction fair value of the plants (daily procurement value minus depreciation or the new reproduction value (daily procurement value) can be used. Experts assess differently which of the two values is the most suitable.
Partial reproduction value
The partial reproduction value, of which one speaks appropriately because the reproduction value should also contain all immaterial goods. This is not the case, however, because the expenses that led to their occurrence cannot be determined and their assessment is impracticable with regard to the current point in time. Such intangible goods are e.g. B. the organization, the location, the working atmosphere, the customer base, the image, the position on the procurement and Sales market and the brand name.