Business valuation implies calculation or estimation of assets, stockholdings and asset groups costs, including all enterprise’s assets (as well as non-material assets).
Among the main objectives of the enterprise valuation the following ones can be mentioned:
- settlement of mergers and acquisitions transaction;
- settlement of purchase and sale enterprise transactions;
- property tax calculation;
- business insurance;
- credit arrangements;
- mandatory share buyback;
- additional stock issue;
- initial public offer;
- attraction of financial resources in business development;
- business expansion;
- privatization and redemption of government shares;
Besides of achieving the above-mentioned main objectives, the valuation result helps to analyze the enterprise’s profitability and investment attraction, as well as to make a decision on a further strategy of development.