Appraisal of Enterprise Value

Appraisal of enterprise value
• Valuing Enterprises is widely understood and acknowledged as:
• Investigate and analyze in detail activities, assets, debits
• Assess the company's operations, assets, and debits
• Determine the existent and potential value of a business.

Why should Appraise the enterprise value

Value is the first thing people want to know when they learn about a product. If you're a business owner, you know how much company assets are worth, but you don't know the market value of your business, you're missing out on something very important.

The valuation of businesses brings many benefits to the owner: protect the business; know the ability of businesses to adjust in order to improve efficiency in business, production ... Most importantly, business valuation is an important basis for businesses to attract capital from talented investors. main.

Appraisal of enterprises comes from the requirements of the merger, acquisition, consolidation or subdivision of enterprises. This type of transaction takes place regularly and popularly in the market mechanism. Especially in the context of active M&A activities today, the valuation of the business becomes even more important.

To carry out such transactions, it is necessary to have a large-scale assessment of the factors affecting the business. In particular, corporate value is a decisive factor, which is a direct basis for people to negotiate with each other in the process of buying, selling, merging, merging, or splitting businesses.

In the view of investors, a business valuation certificate is a general assessment of business reputation, financial capacity and credit position. From there, they have a basis for making decisions about investment, funding or continuing credit to businesses.

A. TYPE OF ENTERPRISES:

A. 1. Classified by form.
- Private enterprise
- State enterprises
- Co., Ltd
- Joint Stock Company

A. 2. Classified by business activities.
- Enterprises directly produce.
- Enterprises providing services in the fields of finance, banking, commerce, consulting, construction design, informatics and technology transfer ....

B. PURPOSE FOR APPRAISING ENTERPRISE VALUE:

- Appraising enterprise value for the purpose of equitization, going to the stock exchange

- Evaluation of enterprise value for divestment purposes

- Appraisal of enterprise value for the purpose of joint venture

- Appraising business value for the purpose of buying, selling, transferring, leasing, ...

- Appraising business value for the purpose of transforming form of operation.

- Appraising enterprise value for the purpose of joint venture, establishment or dissolution of enterprises.

- Appraising enterprise value for mortgage purposes, guaranteeing bank loans.

- Appraising business value for the purpose of issuing more shares ...

C. SUPPLYING DOSSIERS:

I. ORGANIZATION LEGAL - INDIVIDUAL REQUIRED FOR PRICE APPRAISAL:
1. For individuals:
- Identity card photo
- Household registration photo

2. For legal entities:
- Decision to establish the enterprise
- Certificate of business registration
- Certificate of tax code issuance
- Decision on setting up dependent units (if any)
- Capital contribution record
- Other decisions to change names, additional functions….

II. LEGAL OF DOANG THEM REQUIRED FOR PRICE APPRAISAL:

1. Real estate:
- LURC
- A notarized transfer contract
- Location map
- Construction permit
- Current status map
- Registration fee declaration
- Land lease agreement
- Minutes of completion
- Completed drawings
- Drawings before leveling
- Contract for transportation, leveling
- Partial acceptance records
- Certificate of work ownership
- Record of completed work inspection
- Settlement records
- Profile estimates
- Blueprint
- Current state drawing
- Construction contracts

2. Lines of machinery and equipment:
- Economic contracts of sale
- Liquidation records
- Minutes of handover and acceptance
- Technical drawings
- Purchase and sale invoices, detailed declaration
- Catalogue….

3. Means of transport:
+ For vehicles:
- Vehicle registration certificates
- Motor vehicle insurance certificate
- Certificate of technical safety and environmental protection inspection of road motor vehicles

+ For ships:
- Certificate of registration of inland watercraft
- Technical inspection record of inland waterway vessels
- Technical inspection book of inland waterway vehicles
- Certificate of technical safety of inland waterway vessels
- Ship certification
- Certificate of international freeboard
- Certificate of pollution prevention caused by oil
- International certificate of ship security

4. Imported properties:
- Commercial contracts
- INVOICE
- PACKINGLIST
- Customs declaration
- Certificate of origin
- Quality assessment paper
- Purchase and sale invoices detailing ...

5.For financial figures:

Providing documents related to financial figures of the whole Company. As follows:
5.1. Application for determining brand value (if any):
- Audited financial statements of the Company:
- The accounting balance sheet of 05 consecutive years before determining the enterprise value and at the time of enterprise valuation.

+ Year ……………

+ Year ……………

- A table of business results of 5 consecutive years before the enterprise value is determined and at the time of enterprise valuation:

+ Year ……………

+ Year ……………

- A table of cash flows in the 05 consecutive years before the enterprise valuation and at the time of enterprise valuation:

+ Year ……………

+ Year ……………

- The account balance sheet of 05 consecutive years before determining the value of enterprises and at the time of enterprise valuation:

+ Year ……………

+ Year ……………

- Explanation of financial statements of 05 consecutive years prior to enterprise valuation and at the time of enterprise valuation:

+ Year ……………

+ Year ……………

5.2. Relevant documents:

- Business plan of the enterprise in 01-05 years (or 1 to 2 years if any). Details of the production plan such as the output of each item (1 - 5 years or 1-2 years), details of all related costs to calculate the cost of each product that the business produces (1 - 2 years).
- Details of investment plans such as building a new production plant (providing the entire construction project, investing in additional machines and equipment for production, project implementation schedule ...), project market expansion (specify the market expected to expand, how to expand, how to proceed ...) and other investment plans (if any).
- Marketing expenses, marketing advertising costs, branding and branding expenses in the past time (from year to year).
- Information about businesses such as brand, business strategy, marketing strategy (including product strategy, pricing strategy, distribution strategy and promotion strategy) in the next 5-10 years ...
- The certificates of merit, certificates of merit, titles ... related to the products gained in recent years.
- Trademark certificates of each type of product (Ex: Certification of high quality Vietnamese goods ... ..).

The detailed list of ending balances of accounts and documents to compare the balance of accounts at the time of enterprise valuation, specifically:
- Cash (TK111): Minutes of cash inventory.
- Bank deposits (TK112):
- Detailed statement of ending balance (VND + foreign currencies)
- Letter of bank balance confirmation (or supplementary book).
- Receivables (Account131, Account 136, Account 138, Account 139):
- Detailed list of ending balance
- Document of balance reconciliation.
- Inventory (TK 151, TK 152, TK 153, TK 154, TK 155, TK 156, TK, 157, TK 159): Inventory inventory record Which clearly classifies the assets in use, no need to use, stagnant, waiting for liquidation.
- Advance (TK 141):
- Detailed list of ending balance
- Document of balance reconciliation
- Prepaid expenses (Account 142.1):
- Detailed list of ending balance
- Document of balance reconciliation
- Expenses waiting for being carried forward (Account 142.2):
- Detailed list of ending balance
- Document of balance reconciliation
- Assets in shortage awaiting resolution (Account 138.1):
- Detailed list of ending balance
- Document of balance reconciliation
- Mortgages, deposits and short-term deposits (Account 144):
- Detailed list of ending balance
- Document of balance reconciliation
- Fixed assets: Record of inventory of fixed assets. It clearly classifies the assets borrowed, received as capital contribution to joint ventures, unused assets, stagnant, pending liquidation and current assets.
- Long-term financial investments (Account 221, Account 222, Account 223, Account 228, Account 229):
- Detailed list of ending balance
- Document of balance reconciliation
- Construction in progress (TK 241):
- Detailed list of ending balance
- Document of balance reconciliation
- Long-term prepaid expenses (Account 242):
- Detailed list of ending balance
- Document of balance reconciliation
- Mortgages, collaterals and long-term deposits (Account 244):
- Detailed list of ending balance
- Document of balance reconciliation
- Payables (TK311, TK 331, TK 334, TK 335, TK 336, TK 338, TK 341, TK 344 ...):
- Detailed list of ending balance
- Document of balance reconciliation.
- For irrecoverable debts (if any): The detailed list of irrecoverable debts clearly explains the reasons why it is impossible to recover and the documents prove.
- For insolvable debts (if any): A detailed list of insolvent debts, clearly stating the causes and supporting documents.

Business valuation service of VIET VALUATION will provide customers with information about the value of the business with high reliability for each appraisal purpose.