Generally speaking, an enterprise is an economic unit which brings together financial, material and human means to carry out activities of producing, supplying and consuming products or services on the basis of maximizing benefits. Consumers maximize the benefits of the owner, while at the same time rationalizing social objectives.

So what is enterprise valuation?

Corporate valuation is the estimation of the value of an enterprise or its benefits for a certain purpose by using appropriate valuation methods.

In other words, enterprise appraisal is the process of assessing or estimating the market value of the rights and benefits of corporate ownership to the business owner. This process is done by a professional appraiser.

"Enterprise price assessor: A person who has been trained, trained and experienced in meeting the criteria for carrying out the enterprise valuation, the interests arising from the ownership of the enterprise, the securities and intangible assets. "

The role of enterprise valuation

With the development of financial markets, the stock market and other asset markets, corporate appraisals and its benefits increasingly play an important role in the economy. It provides a comprehensive picture of the value of an enterprise, which is an important basis for the user to use the results of the evaluation to make a rational decision on the following key issues:

- Assist the state management agencies to understand the situation of production and business activities and the value of enterprises to have specific management policies for each enterprise such as corporate income tax, tax property, other taxes.

- Help enterprises have the necessary management improvement solutions to improve the efficiency of production and business activities, control the profitability of enterprises.

- It is the basis for resolving and settling disputes between shareholders of enterprises when dividing dividends, capital contribution, breach of contract, etc.

- It is the basis for organizations, individuals and the public to make decisions on the purchase, sale and transfer of securities issued by the enterprise on the financial market; as well as the basis for the merger, splitting, dissolution, liquidation, joint venture, ... enterprise.

Purpose of enterprise valuation

Corporate valuations usually serve the following purposes:

- Buying, selling, merging, joint venture and liquidation of enterprises

- Investing, contributing capital, buying and selling securities of enterprises

- Equitization, listing securities on the stock market

- Borrowing investment capital

- Taxes

- Settling and settling disputes

IVC Vietnam Appraisal JSC is one of the appraisal companies with a staff of experienced, long experienced in the field of price appraisal. We have received the trust of businesses of all economic sectors. IVC Vietnam provides high quality and reliable valuation services to serve our clients and partners more effectively.

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