Benefits of the business when appraising the value of assets

A lot of people wonder what business valuation is for, is this really necessary? In an era of strong economic growth and high competitiveness among businesses, corporate valuation plays a huge role. So, what benefits does corporate valuation bring to the economy, as well as businesses and related departments?

CONCEPT OF ENTERPRISE PRICE APPRAISAL

Business valuation is the estimation of the value of an enterprise, or its benefits, for a certain purpose by using appropriate valuation methods. This is considered to be the process of assessing or estimating the market value of the rights and benefits, brought from the ownership of the business to the business owner.

REASONS FOR IMPLEMENTING ENTERPRISE VALUES

Appraisal provides an overview of the value of an enterprise, measuring business value is an important basis to help a lot to:

- State management agencies are aware of the situation of production, business activities and the value of enterprises. Since then there is a specific management policy for each business on all issues.

- Enterprises have necessary solutions to improve their management and business, in order to improve the efficiency of production, business and control profits.

- An important basis for businesses to attract capital from domestic and foreign financial investors.

- As a basis for resolving and handling disputes among shareholders of the enterprise when distributing dividends, contributing capital, breaching contracts ...

- As a basis for organizations and individuals to make investment decisions, sell or transfer.

- As a basis for merger, division, dissolution, liquidation, joint venture ... enterprises.

PURPOSE OF ENTERPRISE VALUE APPRAISAL

Currently, the valuation of assets and businesses primarily serve the following purposes:

- Proof of financial capacity of the business.

- Mergers, acquisitions, joint ventures, equitization and liquidation of businesses

- Listing, investing, contributing capital, buying and selling securities

- Issuing shares, selling stocks

- Support for business investment loans

- Support in resolving and handling disputes

- Reforming businesses, improving business efficiency.

METHOD OF APPRAISAL VALUATION OF ENTERPRISES

Carrying out business valuation, the enterprise value can be determined by DCF method as well as various methods such as:

- The method of net asset value

- Dividend discount method

- Profit discount method

- Discounted cash flow method

- Price / earnings ratio method (P / E)

DOSSIERS OF APPRAISAL VALUES OF ENTERPRISES

It takes a lot of paperwork, as well as a business valuation report, to make the assessment as fast and accurate as possible.

- Certificate of business registration

- Other relevant legal documents

- Balance sheet of accounting for 3 consecutive years before determining the value of the Enterprise

- 3-year business results table

- List of fixed assets of the enterprise, including real estate, machinery and equipment, details of construction in progress.

- Information about long-term investments of the enterprise (if any)

- Business plan of the enterprise in the next 3 years

- Profile of enterprise capacity

- Attached documents proving the capacity of the enterprise.

- List of typical contracts / customers

- Leaflets that introduce products or services

- Trademark registration, trademark (if any)

PROCESS OF APPRAISING ENTERPRISE VALUE IN APPRAISAL

Step 1: General identification of the enterprise and the basis of the value of enterprise valuation

Step 2: Make a plan for business valuation.

Step 3: Survey and collect documents about enterprises which need to be appraised

Step 4: Analyze the collected information

Step 5: Determining the method of price appraisal

Step 6: Preparation of report and preparation of valuation report

Indochina International Investment & Appraisal Joint Stock Company (INA) is known as one of the leading prestigious valuation companies in Vietnam. Our company is a convergence of good and devoted staff, long-standing activities in the field of valuation. Therefore, we are confident to bring reputable price appraisal service to serve customers more effectively. This helps Indochina always get the trust of businesses across the country.

For support on enterprise valuation by asset method, corporate valuation consultancy ... Please contact us immediately:

Indochina International Investment & Appraisal Joint Stock Company (INA)

• Address: 121 Nguyen Van Troi, Ward 12, Phu Nhuan District, Ho Chi Minh City
• Hotline: 0934 252 707 / Email: info@inavn.vn