DETERMINATION OF BUSINESS VALUES

Wednesday, 30 June 2010 08:25

Conversion of business ownership is a motivation boosting production and business activities and an effective capital mobilization channel for enterprises. One of the crucial phases of this process is to determine enterprise’s value.
    Business values determination service of THUONG TIN APPRAISAL JOINT STOCK COMPANY – SACOMVALUE will provide customer with information about values of enterprise with high reliability according to each purposes of the appraisal

     There are many methods of determining the value of an enterprise under international standard, yet Vietnam is currently applying 2 main methods, which is often used by appraisal organizations: The method of determining the enterprises’ value by their assets (Assets Method) and Discounted Cash Flow method (DCF).
1. Type of businesses under value determination includes:
 - State-owned enterprises/firms;
 - Private companies;
 - Joint-stock companies;
 - Limited companies.
2. Business values determination aims for:
 - Equitization;
 - Transfer, conversion;
 - M&A, joint venture, business establishment or dissolution;
 - Mortgage and guarantee for bank loans;
 - Release of more shares,…
3. Required materials for business values determination:
 - Certificate of Business Registration;
 - Business License of Conditional Use Permit;
 - Other legal documents relating to legal status;
 - Minutes of counting goods, materials, tools and supplies in stock;
 - List of short-term, long-term prepaid expenses;
 - Debt profile;
 - Minutes on certification of bank balances, deposit, cash balance to the date of enterprise values determination;
-  Financial reporting system of the enterprise at the time of enterprise values determination;
-  A list of the construction expenses in progress;
-  Profile of financial investments;
-  Detailed list of fixed assets at the time of equitization;
-  Other legal documents relating to equitization.
-  Information about business such as trademark, business strategies, marketing strategies (including product strategy, price strategy, distribution and promotion strategy) within 5 years in the future...
-  All legal documents relating to assets (real assets and mobile assets) of the company

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