Maximizing the needs of management
EVAL is extremely important in business decision-making and can help management to effectively improve business decisions. The goal of enterprise financial management is to maximize the value of the enterprise, the feasibility of the enterprise's various business decisions must depend on whether the decision is conducive to increasing the value of the enterprise.
Value assessment can be used for investment analysis, strategic analysis and value-based management; can help managers better understand the company's strengths and weaknesses.
China's current stage of accounting information is distorted, the quality of accounting information is not high, in essence, affecting the true reflection of the enterprise's financial position and operating results. Accounting indicator system can not effectively measure the ability of enterprises to create value, accounting indicators based on financial performance is not equal to the actual value of the company. The actual value of the enterprise is not equal to the book value of the enterprise. By accounting for book value, companies are often unable to recognize the value of their own intangible assets, which are valuable assets that have been developed and researched over a long period of time and accumulated over time.
This leads to a very critical part of the MBO implementation process - the target company's value assessment, i.e., the management's valuation of the company it serves, which not only includes the valuation of the company's tangible assets, but also covers the assessment of intangible assets such as technology, management, enterprise, and talents. Therefore, enterprise value assessment helps enterprises to pay attention to these accounting distortion information, verify it carefully, fully understand the factors of accounting distortion information, and handle it correctly, so as to overcome the unrealistic assessment results of other assets caused by accounting distortion information. Avoid leading to the alienation of enterprise value, which affects the accuracy of enterprise value.
Emphasis on financial management centered on the management of enterprise value maximization, enterprise financial management personnel through the assessment of enterprise value, understand the true value of the enterprise, make scientific investment and financing decisions, and continue to improve the enterprise value and increase the owner's wealth.
Needs of M&A
In the process of M&A, investors are not satisfied with the value of the target enterprise at a certain point in time from the perspective of replacement cost, and they would like to understand the value of the target enterprise from the perspective of the enterprise's existing operating ability or the perspective of similar market comparison, which requires appraisers to provide further information about the value of the equity, and even require appraisers to analyze the additional value that can be brought by the integration of the target enterprise with the enterprise. This requires appraisers to provide further information on equity value and even to analyze the additional value that can be brought by the integration of the target enterprise with the Company. At the same time, the capital market needs more enterprise value appraisals that assess overall profitability.
In real economic life, there are often cases of transferring and merging enterprises as a whole, such as mergers, purchases, sales, reorganization, joint ventures, joint ventures, guarantees and so on, which all involve the assessment of the value of the enterprise as a whole. In such cases, the value of the enterprise as a whole is assessed in order to determine the price of the joint venture or resale. However, the value or purchase price of a business is never simply the algebraic sum of the value of the individual fair-appraised assets and liabilities. Because people buy and sell businesses or merge in order to make a profit by operating that business, there are quite a few factors that determine the size of the price of a business, the most basic of which is the size of the business's ability to utilize its own assets to make a profit. Therefore, enterprise value assessment is not an assessment of the various assets of the enterprise, but a holistic and dynamic value assessment of the enterprise asset complex. In contrast, enterprise assets refers to the assessment of the value of a particular asset or a few assets of the enterprise, is a local and static assessment.
Quantifying enterprise value, checking the bottom line, and managing dynamically
For every company manager, it is vital to know the specific value of his or her company and to be clear about the ins and outs of calculating that value. In a planned economy, companies are generally concerned with the management of tangible assets and often ignore intangible assets. In a market economy, intangible assets have gradually been emphasized, and increasingly recognized as an important asset of the enterprise. In foreign countries, the value of intangible assets in some high-tech industries is much higher than that of tangible assets, and the value of intangible assets in China's high-tech industries is also considerable. Entrepreneurs who want to know their own family background in order to strengthen the management, it is necessary to assess the value of the enterprise through the valuation agency for a fair assessment.
Board of Directors, Shareholders' Meeting to understand the effect of production and management activities
The goal of the company's financial management is to maximize the value of the company, the company's business decisions are feasible, depending on whether the decision is conducive to increasing the value of the company.
Company management only to the company's financial statements at this stage to measure the company's operating results is a one-sided approach, the correct implementation of value assessment as a means of maximizing the value of management, is to promote the sustainable development of China's enterprises is an important means.
Enterprise value assessment is an important prerequisite for investment decisions
Enterprises in the market economy as the main body of the investment has been clearly defined, but to ensure the rationality of investment behavior, there must be a correct assessment of the current value of corporate assets. China's market economy has developed to the present day, in a variety of economic activities in the enterprise with tangible assets and patented technology, proprietary technology, trademark rights and other intangible assets to form an optimized portfolio of assets for the price of human shares has been very common. Joint ventures, partners in the decision-making, these intangible assets must be quantified, by the assessment of intangible assets by the assessment agency for an objective and fair assessment, the results of the assessment is not only the investor and the investee unit an important basis for investment negotiations, but also the investee unit to determine the value of its intangible capital accountable to the objective criteria.
Expanding the means of improving the influence of enterprises and demonstrating the strength of enterprise development
With the image of the enterprise gradually receiving the attention of the business community, through the publicity of famous brand trademarks, has become an important way for enterprises to go international. Enterprises have a large number of intangible assets, to the enterprise to create more than the general means of production, production conditions can create excessive profits, but its value reflected on the books is insignificant. Therefore, enterprise value assessment and publicity is an important means to strengthen the corporate image and show the strength of development.
Increase corporate cohesion
Corporate value is not only to convey to people outside the company the state of health and development trend of the enterprise, but also more importantly to convey corporate information to all classes of employees within the company, and cultivate the loyalty of the employees to the enterprise enterprise, in order to achieve the purpose of cohesion.
Classic case of asset valuation
Taishan Group, more than 200 kinds of products selected for the Beijing Olympic Games
Become the largest supplier of Olympic history
Leuling news, just won two more "Chinese famous brand" Taishan Sports Industry Group formally signed a contract with the Beijing Organizing Committee for the 2008 Olympic Games to provide gymnastics, calisthenics, gymnastics, gymnastics, gymnastics, gymnastics, gymnastics, gymnastics, gymnastics, gymnastics, calisthenics, gymnastics and gymnastics. 2008 Olympic Games to provide gymnastics, judo, taekwondo, wrestling, boxing and track and field six categories of more than 200 kinds of sports products, become the Olympic history of a one-time equipment to provide the most companies.
Taishan Sports Industry Group began as a family workshop producing gymnastics mats. "It is scientific and technological innovation that has made Taishan Group what it is today." Chairman Bian Zhiliang said. In Leling municipal party committee and the municipal government's efforts to help, they continue to increase scientific and technological innovation, has cooperated with Shandong University, East China University of Science and Technology, built two national research and development centers, and successfully developed a national leading nano-materials artificial grass silk and more than 30 kinds of new sports equipment. Among them, "Taishan Brand" artificial turf has become the only recommended product of China Football Association, and "Taishan Brand" Wushu Ground has been designated as the only competition ground by Wushu Management Center of General Administration of Sport of China; it has passed ISO9001 International Quality System Certification, ISO9001 international quality system certification, ISO14001 international environmental management system certification and ISO18000 international occupational health and safety certification, and more than 20 kinds of special equipment through the international sports federation, the international federation of athletics and the international federation of football certification, the product occupies more than 90% of the market share of the national competitive sports equipment, exported to the United States, Russia, Iran, the European Union and other 160 countries and regions. 2004, and the Netherlands JF company to produce gymnastic equipment by the Dutch JF company was the only recommended products. In 2004, the gymnastic equipments produced in cooperation with JF of Holland were successfully applied in Athens Olympic Games. The company has won many awards such as "China Famous Trademark", "National Inspection-free Products" and three "China Famous Brands", and participated in the drafting of the national sports equipment industry standard as the main drafter. The company also participated in the drafting of the national sports equipment industry standard as the main drafter.
The former small workshop has developed into a large-scale modernized private enterprise with an annual output value of more than 2 billion yuan, profits and taxes of more than 400 million yuan, and exports of more than 30 million U.S. dollars, and its "Taishan" brand has been evaluated by the authoritative national evaluation agency Beijing Northern Asia Affairs Asset Appraisal Company Limited Liability Company, and its value is as high as 11.8 billion yuan. Its "Taishan" brand is valued at 11.8 billion yuan by Beijing North Asia Asset Appraisal Co. Liu Peng, director of the State General Administration of Sports and president of the Chinese Olympic Committee, said, "This is the only one in China and the only one in Asia."
Zhejiang Romo Group trademark value of 2.6 billion yuan
---- to pledge the trademark right Successful loan of 780 million yuan
Located in Ningbo, Zhejiang Fenghua, Jiangkou Town, Romo Group was founded in 1984, is the State Administration for Industry and Commerce approved the national, non-regional, cross-industry, modernized and famous large-scale apparel enterprise groups, Romo suits the country's first annual sales volume. The annual sales volume of western-style clothes ranks first in China, and the comprehensive share of domestic market of western-style clothes ranks second. 2002 sales of 1.5 billion yuan, breakthrough profits and taxes of 120 million yuan, the group is also China's largest export enterprise of western-style clothes, and has exported a total of more than 5 million sets of western-style clothes (pieces), the export volume of the domestic ranked first. The group now has fixed assets of 1 billion yuan, with 98% of the world's first-class high-tech clothing production equipment, high-quality employees more than 10,000, the company passed the ISO9002 international quality system certification and ISO14001 international environmental management system certification. Romo is now a registered trademark in more than 20 countries such as the United States, France, Italy, Russia, Japan, etc., and is a well-known trademark in China, a famous brand in China, and a famous brand in Zhejiang.
September 2007 by the national authoritative appraisal organization Beijing North Asia Asset Appraisal Co., Ltd. assessed the value of its trademark as high as 2.6 billion yuan, successfully mortgaged in the Agricultural Bank of China for 780 million yuan, creating the most intangible assets mortgaged loans in the country.