Valuation of enterprises

Corporate valuation is a segment within the valuation industry. Although this object of appraisal appeared in Vietnam not as long as in developed countries, in recent years, along with the startup movement, this field has also grown rapidly due to the need to determine enterprise value to appeal. calling for capital investment, equitizing, issuing shares, buying, selling - transferring ... of enterprises is growing.

Because the specific object of price appraisal is Enterprise, including many types such as: State-owned enterprises, private enterprises, joint-stock enterprises, limited companies, joint-venture companies ... should require price appraisal unit. must have reputation and deep expertise in pricing these objects. Hoang Quan Valuation Co., Ltd is always the first choice of enterprises in Vietnam, because Hoang Quan brand has created a reputation and a pioneer position with nearly 20 years of intensive experience in the appraisal industry. price.

1. What is Enterprise Valuation?

Currently, enterprise valuation is officially understood and recognized as the activities including:

• Investigate and analyze in detail activities, assets, and debts of the business / company.
• Evaluation of the companys activities, assets, and debts.
• Determine the existing value and potential of the business.

Thus, we can understand that valuation of an enterprise is to determine the exact value of an enterprise according to market valuation through detailed analysis of tangible and intangible assets at present and in the future. hybrid.

2. The purpose of business valuation

Enterprise valuation serves many different purposes, depending on the needs of entities such as: business owners, banks, investors, tax authorities, insurance ... etc, but generally includes the following basic purposes:

• Valuation of your business: If you are a business owner, you can know and value the assets of your business. However, to accurately determine the value of that enterprise according to the market price, it is necessary to have an in-depth appraisal application to determine the value of that enterprise in a scientific way, according to Vietnamese valuation standards.
• Calling for financial investment: This is one of the most important and popular purposes today when conducting corporate valuation; Because in order to call for investment capital from investors, business owners need to determine exactly how much money their business is worth.
• Issue shares
• Reform businesses, improve business efficiency
• Demonstrate financial capacity
• Shares, joint ventures, capital contribution
• Buying, selling, transferring and merging enterprises
• Enterprise establishment or dissolution

For entities that are business owners, banks, investors ..., business appraisal certificate is the general assessment of the actual "strength" of the Enterprise. From there, they have the basis to make decisions about investment, financing or continuing to provide credit to the business.

3. Enterprise valuation method

Vietnamese Valuation Standard No. 12 (TĐGVN 12) has guidance on enterprise valuation approaches and methods. In which, the approach in enterprise valuation includes: the market approach, the cost approach and the income approach. Valuation units, appraisers can use all approaches to appraise business prices. Each approach includes different valuation methods, aggregated including the following main methods:

• Average ratio method
• Transaction price method.
• Property method
• Free cash flow discount method of the enterprise
• Dividend stream discount method
• Net equity cash flow discount method

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4. Price appraisal documents

For enterprises, dossier of appraisal of prices includes 2 parts: legal documents of organizations and legal documents of property valuation.

• Legal records of organizations
• Certificate of business registration.
• The tax registration certificate.
• Decision to establish affiliated units.
• Minutes of capital contribution, association, capital contribution to establish the company
• Legal records property valuation

Each owned business will own many different assets such as: Land use rights; Machine line; Construction; Transportation; Imported property; Financial data ... In which each asset object will include different legal documents.

5. Appraisal Process

Similar to the process of valuing real estate, property, resources or investment project; Enterprise valuation also goes through major steps such as:

• Receive information and handle needs
• Price appraisal planning
• Actual survey, collecting information
• Development of price appraisal report
• Control
• Issue valuation report and certificate

With nearly 20 years of specialized activities in the field of appraisal prices, with millions of valuation letters have been issued; Hoang Quan is known as the leading brand in Vietnam in corporate valuation. In particular, Hoang Quan Appraisal Co., Ltd has been certified by BVQI (UK) for quality management ISO 9001: 2000. Valuation Hoang Quan always operates under the motto "Independence - Science - Accuracy - Comprehensive - Efficient".

Hoang Quan Valuation Company Limited - Hanoi Branch

Hotline: 0901.186.700

Valuation Hoang Quan - The measure of value