13/04/2026
THE AMARYLIS HOTEL SAGA BY G.M.WAWANYA MASINA
VALUATION
Of late the word "valuation" has become a controversial term. The term has been misunderstood, abused and misused.
There is a need to further explain the particular context in which it is used.This is an attempt to do just that. I am a registered and duly licensed Valuation Surveyor with over 50 years experience 39 of which is in private practice.
There are two aspects of value which are being confused by the public and these are the property valuation and the business valuation.
Property Valuation would
concern mainly the land and buildings even though this could also briefly address the business aspect. This value would be valid for a period of time, usually one year .
Then there is the Business Valuation which in Malawi is usually performed by Accountants. This looks at the value of the Institution as an on going operation. This would also be valid for a period usually also one year. Both would be dependent on the state of the economy. A combination of the two would be the capital value of the business for that period. Say for a year only.
A subsequent valuation would then need to be done if any of the valuations have expired.
The business worthiness as an investment would be done by actuarial experts and would obviously look at future returns.
Things like IRR ( internal rate of rerurns),growth prospects, projected economic performance, likely political impact etc would all be considered and would be the subject of fiduciary governance.
Hence the involvement of investment companies, discount houses and the central bank.