Capital strengthening: a new lever to make businesses grow

Capital-strengthening

Capital strengthening: a new lever to make businesses grow

A tool of growth for our enterprises is represented by the new revaluation of business assets, which came out with a different look than usual. This tool offers excellent opportunities for the strengthening of assets, which is necessary in times of pandemic.

It is interesting to look at the possibility of revaluation of the balance sheet value of fixed assets, in addition to the related tax savings, also and above all by evaluating the benefits in terms of greater asset strength (the entry of the revaluation reserve involves an increase in equity).

This represents an excellent opportunity for growth as it allows you to improve your bank rating (and consequently to have easier access to credit), in addition to positively influencing any covenants of a capital nature.

Finally, the revaluation of intangible assets (trademarks, patents, etc.) could allow the emergence of significant unexpressed values with positive effects on any reorganization, aggregation and disposal operations.

The revaluation of business assets provided for by Art. 110 of Legislative Decree 104/2020 (August Decree), offers important opportunities for strengthening assets, also in view of the impact of 2020 losses on fragile shareholders’ equity in this complex scenario by Covid-19.

This revaluation (precluded only to those who adopt international accounting standards) appears extremely advantageous compared to the previous ones for the following main reasons:

  • it has a reduced cost if you opt for tax recognition (3% substitute tax, very affordable compared to previous revaluations, with the possibility of three-year accrual and offsetting with F24);
  • it can be free of charge as it is possible to opt for a statutory revaluation of all business assets, both tangible and intangible;
  • it allows for a separate revaluation of individual assets (and not for “categories” as in previous versions);
  • it allows the revaluation to be recorded in the financial statements at 31/12/2020 and the recognition of the fiscal values for depreciation purposes as early as 2021.

We recommend reading the “Special revaluation of assets” of Sole 24 Ore in addition to reading the full text of art. 110 of DL 104/2020.