Considerations Regarding the Valuation of the Fortunes in Forbes’ Top
The valuation done by Darian was a desktop work and had as a basis almost entirely the information made available by the journalists and also public sources, the accuracy of the results being limited by its quality.
The estimation of the value of a fortune was focused on the valuation of the owned real-estate, residential ones (houses, villas, and land) with personal utility, or industrial types, agricultural, commercial or the ones currently being developed. In the case of properties with personal utility the current market value was taken in consideration, while in the case of investments with a significant real-estate basis the higher value between the real-estate and the business was considered. For the development projects their stage was considered, regarding the contribution of the land value with specific elements (project, urbanism, authorizations) more than the value of unfinished buildings, taking in consideration the fact that these are usually made with loans with high financial costs and have declining values due to their uncertain selling (specifically, big projects). For residential projects that are in a finalized stage what was measured was the profitability that a medium investor can obtain it, from selling a location at the level of 2009. In the estimation of values was not taken in consideration the level of personal debt (if it existed) or patrimonial litigations, as there was a lack of information in this area.
The significant decrease of fortunes is, in most cases, due to the depreciation of the value of properties and assets on the capital markets, the only increase being registered by the ones that finalized projects and sold in 2008 significant assets at high prices or the ones that operate in industries that were not too much affected by the crisis. Also, the speculative character of the real-estate market diminished dramatically specifically for lands or projects for which the values decreased tremendously.
Dr. ec. Adrian Crivii, FRICS, MAA