Valuation of enterprises
Corporate Valuations "are widely understood and acknowledged as the detailed investigation and analysis of activities, assets, debits, assessments of assets, assets, debits of Company, determine the value of the existence and potential of a business.
1. Overview of enterprise valuation
Corporate Valuations are widely understood and recognized as:
- Investigate and analyze the details of activities, assets, debits
- Evaluate the activities, assets, debits of the company
- Determine the potential and value of an enterprise.
2. Purpose of enterprise valuation
- Issuing shares, selling shares to the public
- Proof of financial capacity
- Improving business, improving business efficiency
- Serving for equitization, joint venture, capital contribution
- Mergers and acquisitions (M & A)
- Establishment or dissolution of the enterprise
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3. Objects of enterprise valuation service
- Private companies, organizations and state-owned enterprises
- Have been preparing for equitisation
Expected significant changes in the ownership or capital structure of the company: merger, joint venture, affiliation, transfer of capital, company purchase or business franchise.
- Preparing to issue bonds for the first time to the public
- The development and expansion of the scale of activities, or changes in the organization of production and business.
4. Contents to be appraised
Key appraisal areas in the "Enterprise Valuation" process:
- Objective factors:
+ Sector analysis
+ Impact of the national economic situation and trend
External competitive factors
- subjective factors:
Financial Statements - Ensure Accuracy.
Assets - Validate values, status, and ownership.
+ Human resources - Identify the strengths and weaknesses of the staff.
Sales Strategies - Analyze sales policies, including assessments of effectiveness and inefficiency
Marketing - Consider the effectiveness of programs, marketing strategies
+ Scope of activities - evaluation of the company's activities
Competitors - Understand and capture potential competition threats.
Is the internal management system effective? Is there a need for improvement?
+ Legal issues - tax, capital structure ...
+ Contracts and leases
+ System providers - Reliability as well as commercial terms
5. Methods in enterprise valuation
- net asset value method
- Method of discounting dividends
- Method of profit discount
- Discounted cash flow method
- Price / income ratio method (P / E)