Business valuation

Purpose of enterprise valuation
Business valuation is recognized and widely understood as the investigation and review of the operations of the business. Aims to determine present value and future potential value. Demonstrate financial capacity of the enterprise for internal or external operations.

Appraising enterprises preparing for equitization; change the ownership or restructure of the companys capital such as merger, joint venture, association, capital transfer, capital contribution, sale of the company or franchise.

Valuation of businesses preparing to issue bonds for the first time; expand the scale of operations or change the organization of production activities, scale and structure of business operations.

Appraisal of businesses that want to reform their business model, improve their apparatus or upgrade their business efficiency, need to redefine assets such as real estate, movable assets such as "means of transport, ships and boats" sea, ... ", production line.

Business valuation aims to establish or dissolve, for many reasons businesses are required to appraise the value of their existing assets for the purpose of establishment or dissolution.

Regardless of the operation of the business, the valuation of the business is always the basic step of the assessment with the factors and the wide range affecting the operation of the business, the decisions are grounded. directly of enterprise value to negotiate, negotiate and make decisions on buying, selling, merging, merging, reforming, issuing stocks - bonds or even declaring an establishment or dissolution.

Business valuation certificates play an extremely important role when clearly reflecting the overall assessment of a businesss reputation, financial capacity and credit position. In the eyes of investors, banks, and other businesses, it is a solid basis for making investment decisions, financing, continuing or stopping providing credit to businesses.

Enterprise valuation has content and factors?

Consists of 2 key factors are objective factors and subjective factors.

Objective factors:

Industry analysis: In a market economy, except for some specific industries such as electricity, water or special types of natural resources, which are only allowed to be exploited by the state, enterprises and companies are divided. in different professions.
The analysis of specific industries, production, services, and trade aims to show the competitiveness and position of enterprises compared to the whole of all businesses and companies operating in the same field. , including: statistics of supply and demand, the level of competition in the industry and other new industries, opportunities for development and potential in the future, the influence of objective factors outside the industry.
Analyze the influence of external factors and market economy trends to analyze potential development opportunities in the future, competitive advantages and risks of enterprises. Based on "sensitive" market reactions. For example, the Covid-19 wave over the past time, investors and investors from individuals, intermediaries to corporate enterprises were extremely sensitive to the announcement of how government quarantine, causing an abrupt economic slowdown.
Subjective factors:

Financial statements: Synthesize reports with high accuracy on the financial situation of the business, clearly analyzing total assets and cash.
In addition, for specific assets or market fluctuations, the value of such assets will always need to be assessed and accompanied by a certificate of valuation of assets to ensure the value money, status and ownership of the property.
Human resources of the enterprise: determine the professional and professional competence of the staff, largely determining the work progress of the business.
Business - sales - marketing strategy: Operating policies, business orientation, marketing - sales strategy and evaluation of the effectiveness / inefficiency of the strategy, optimization of the strategy to bring business efficiency. desired business.
Scope of activities and competitors: Appreciate the position of the company and position the brand in the right position, capture potential risks and potential opportunities for development.
Issues, decisions and structural changes of the government: Based on market activities, the government is very limited in intervention but if problems related to the national economic situation are targeted. Extreme, the enactment will partly give businesses more opportunities to recover and develop.
Methods of enterprise valuation:

• Appraisal by the method of net assets.
• Appraising value by the method of discounting dividend flow.
• Appraising value by profit discount method.
• Appraising value by cash flow discount method.
• Valuing value / price (P / E) method.
• Documents required for business valuation.

Legal documents related to enterprises before appraisal of prices:

• Business registration certificate.
• Tax registration certificate (MST).
• Decisions, official dispatches and documents related to the operating model according to each type of operation of the Enterprise.
• Materials required to conduct business valuation.
• For manufacturing enterprises, a 3-year accounting balance sheet is required, for service enterprises, for 5 consecutive years before enterprise valuation and at the time of enterprise valuation, including tax finalization. (if).
• For manufacturing enterprises, they need a 3-year business results table, for a service enterprise, for 5 consecutive years before price appraisal and at the time of enterprise valuation, including tax finalization (if any). ).
• Balance sheet and Cash flow table at the time of enterprise valuation.
• Enclose the list of account details such as:
• Cash: Statistic table and inventory of cash fund.
• Bank deposit = Bank deposit statement + Bank deposit balance sheet.
• List of short and long-term investment accounts, long-term deposits and deposits, long-term prepaid expenses.
• Accounts receivable, payable: Short and long-term loans. Long-term liabilities come due. Exchange rate differences in payment (if any)
• Volume of inventories, depreciation of tools and fixed assets.
• Inventory of corporate assets: clearly classified but leased assets, related capital contribution - associated, unused assets, unsold inventory or pending liquidation.
• Detailed inventory of long-term investment capital in other enterprises (if any) such as: contributed capital in joint ventures, associates, equity capital, contributed capital to establish limited liability companies, 5-year financial statements audited, joint venture capital contract, charter of establishment of joint venture company, statistical table of joint venture interest divided from its inception.
• Detailed inventory of construction in progress.
• All legal documents related to the assets (real estate and real estate) of the business.

All details please contact us.

INA INTERNATIONAL CORP (INA)

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