Business valuation is the estimation of the value of a business or its benefits for a given purpose using appropriate valuation methods. This process is carried out by the valuer. In other words, business valuation is the process of evaluating or estimating with the highest confidence the income that an enterprise can generate in the process of production and business.
Business valuation means:
- To carry out detailed investigation and analysis of activities, assets, debits
- To assess the company's operations, assets, and liabilities
- To determine the existing and potential value of a business.
Objects and assets of business valuation activities include:
- Businesses wishing to know corporate value
- Know the ability of the business to improve business efficiency
- Attracting investor capital
- Property mortgage, credit guarantee;
- Buying, selling, transferring, contributing capital to joint ventures;
- Enterprise establishment, enterprise equitization;
- Debt settlement, enterprise dissolution;
- Compensation, insurance, claims;
- Accounting, tax calculation;
- Consultancy and making investment projects;
- Other purposes;
- Valuation methods
- Certificate of business registration.
- The tax registration certificate.
- Decision on establishment of affiliated units.
- Minutes of capital contribution, association, capital contribution to establish the company.