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Enterprise Valuation

DETERMINATION OF BUSINESS VALUE

1. Overview of enterprise valuation:
Enterprise valuation is widely understood and acknowledged as:
Investigate and analyze in detail the activities, assets, and debits
Evaluate the company’s activities, assets, and debits
Determine the existing and potential value of a business.
2. The purpose of enterprise valuation:
Capital transfer
Stock issue
Proof of financial capacity
Reform businesses, improve business efficiency
Serving for equitization, joint venture and capital contribution
Business M&A (M&A)
Establishment or dissolution of enterprises
3. Subjects of using enterprise valuation services:
Private companies, organizations and state-owned enterprises
Has been preparing for equitization
It is expected that there will be significant changes in the ownership or capital structure of the company: merger, joint venture, association, capital transfer, trading company or franchise …
Prepare to issue bonds for the first time to the public
In the process of developing and expanding the scale of operation, or there is a change in the organization of production and business activities.
4. Methods in enterprise valuation:
Net asset value method
Method of discounting dividends
Profit discount method
Discounted cash flow method
Price / income coefficient method (P / E).