Business evaluation of entire enterprises

The valuation of each property is a purposeful process, subject to certain rules and laws. The valuation of a commercial enterprise is a process of determining the total value of the business, which depends on the value of tangible and intangible assets and liabilities, the efficiency of the enterprise, the presence of competitive advantages, the value of human resources and many other indicators.

The valuation covers:

– The property of enterprises as a set of tangible and intangible assets.
– The obligations of the enterprise related to its reproduction.
– The ability of the enterprise, functioning, to generate income taking into account the time factor and the level of risk.
– The economic relations arising on the occasion of the realization of the property rights over the enterprise and the distribution of the income generated by it in the conditions of a specific market.
– The image of the company, determined by its market position, competitiveness, customers, intangible assets.

The valuation of commercial enterprises or valuations of business interests cover the entire process of determining the economic value of an entire business or company unit.

A commercial enterprise valuation is commonly used to determine the market value of a business for a wide range of needs, such as the need to determine sales value, establish ownership of partners, taxation, mergers and acquisitions, and other purposes.

The valuation of the business may include an analysis of the company’s management, its capital structure, future profit prospects and the market value of its assets. The tools used for valuation can vary between appraisers, enterprises and industries. Common approaches to business valuation include reviewing financial statements, discounting cash flow models and comparisons of companies.