Enterprise value assessment, as the name suggests, is to use scientific and professional methods to evaluate the value of an enterprise. So what does enterprise value assessment mean to an enterprise?
(1) The need for enterprise value maximization management
1. Enterprise value assessment is extremely important in enterprise business decisions and can help management authorities effectively improve business decisions. The goal of corporate financial management is to maximize corporate value. Whether each business decision-making is feasible depends on whether the decision is conducive to increasing corporate value. 2. Value assessment can be used for investment analysis, strategic analysis and value-based management; it can help managers better understand the company's strengths and weaknesses.
3. At this stage, accounting information in our country is distorted and the quality of accounting information is not high, which essentially affects the true reflection of the company's financial status and operating results. The accounting indicator system cannot effectively measure an enterprise's ability to create value, and financial performance based on accounting indicators is not equal to the company's actual value. The actual value of a business is not equal to the book value of the business. Through the calculation of book value, enterprises often cannot confirm the value of their own valuable wealth - intangible assets that have been accumulated through long-term development and research over time. This leads to a very critical link in the MBO implementation process - the value of the target company. Assessment, that is, the management's valuation of the enterprise it serves, which includes not only the valuation of the enterprise's tangible assets, but also the evaluation of intangible assets such as technology, management, enterprises, and talents.
Therefore, corporate value assessment helps companies pay attention to and carefully verify these accounting distortion information, fully understand the factors of accounting distortion information, and handle them correctly to overcome other asset evaluation results caused by accounting distortion information. Untrue situation. Avoid alienating corporate value and affecting the accuracy of corporate value.
4. Pay attention to financial management with corporate value maximization as the core. Corporate financial managers understand the true value of the enterprise through the evaluation of corporate value, make scientific investment and financing decisions, and continuously improve the enterprise. value, increasing owner wealth.
(2) What is the need for corporate mergers and acquisitions?
1. In the process of corporate mergers and acquisitions, investors are no longer satisfied with understanding the value of the target company at a certain point in time from the perspective of replacement cost. , but also hope to understand the value of the target company from the perspective of the company's existing operating capabilities or comparison with similar markets. This requires the appraiser to provide further information about the equity value, and even requires the appraiser to analyze the benefits that the integration of the target company and the company can bring. Extra value. At the same time, the capital market needs more corporate value assessments represented by assessment of overall profitability.
2. In real economic life, situations such as transfer and merger of enterprises as a whole often occur, such as enterprise mergers, purchases, sales, reorganization of joint ventures, joint stock operations, joint ventures and cooperative operations, guarantees, etc. , all involve the assessment of the overall value of the enterprise. In this case, the value of the entire business is assessed in order to determine the joint venture or resale price. However, the value of a business, or the purchase price, is by no means simply the algebraic sum of the fairly assessed asset values ??and liabilities of each individual item.
Because the purpose of people buying, selling or merging companies is to obtain profits by operating the company, there are many factors that determine the price of the company, the most basic of which is the ability of the company to use its own assets to obtain profits. size. Therefore, enterprise value evaluation is not an evaluation of each enterprise's assets, but a comprehensive and dynamic value evaluation of the enterprise's asset complex. Enterprise assets refer to the evaluation of the value of a certain asset or certain assets of the enterprise, which is a partial and static evaluation.
(3) Quantify corporate value, verify family assets, and dynamically manage?
1. For every company manager, it is important to know the specific value of his company and clearly calculate it The context of value is crucial. Under the planned economic system, enterprises are generally concerned with the management of tangible assets and often ignore intangible assets. Under the market economy system, intangible assets have gradually received attention and are increasingly considered to be important assets of enterprises. In foreign countries, the value of intangible assets of some high-tech industries is much higher than that of tangible assets. The value of intangible assets of my country's high-tech industries is also considerable. Entrepreneurs who want to have a clear understanding of their financial situation so that they can strengthen management must conduct a fair assessment of the company's value through an appraisal agency.
2. The most important problem currently existing in enterprise management is the backward management level. The correct implementation of value maximization management using value assessment as a means is an important means to promote the sustainable development of our country's enterprises.
(4) Do the board of directors and shareholders need to understand the effects of production and operation activities?
1. The goal of the company’s financial management is to maximize the company’s value. Is the company’s various business decisions feasible? , depends on whether this decision is conducive to increasing the company's value.
2. my country’s current accounting information is distorted and the quality of accounting information is not high, which has substantially affected the true reflection of the company’s financial status and operating results. The accounting indicator system cannot effectively measure an enterprise's ability to create value, and financial performance based on accounting indicators is not equal to the company's actual value. The actual value of a business is not equal to the book value of the business.
3. It is a one-sided approach for the company's management to only measure the company's operating results based on the company's current financial statements. The correct implementation of value maximization management using value assessment as a means is to promote the sustainable development of our country's enterprises. an important means.
(5) Enterprise value assessment is an important prerequisite for investment decisions.
The status of enterprises as investment entities in the market economy has been clarified, but to ensure the rationality of investment behavior, it is necessary to have a correct assessment of the current value of enterprise assets. With the development of my country's market economy today, it has become common for companies to use tangible assets and intangible assets such as patented technology, proprietary technology, and trademark rights to form optimized asset portfolios in various economic activities. Joint ventures and partners must quantify these intangible assets when making decisions, and have an evaluation agency conduct an objective and fair evaluation of the intangible assets. The evaluation results are not only an important basis for investment negotiations between the investor and the invested unit, but also an important basis for the invested unit. The objective standard for determining the book value of its intangible capital.
(6) Corporate value assessment is a means to expand and improve corporate influence and demonstrate corporate development strength.
As the corporate image issue gradually attracts the attention of the business community, the promotion of famous brands and trademarks has become an important way for companies to go international. Enterprises possess a large amount of intangible assets, which create excess profits for the enterprise that exceed what ordinary means of production and production conditions can create, but their value reflected in the books is negligible. Therefore, corporate value assessment and publicity are important means to strengthen corporate image and demonstrate development strength.
(7) Increase corporate cohesion.
Corporate value should not only convey the health status and development trends of the company to people outside the company, but more importantly, convey corporate information to employees at all levels within the company, cultivate employees' loyalty to the company, and cultivate employees' loyalty to the company. To achieve the purpose of uniting people's hearts.