Help on Tele2, tariffs, questions

"A reasonable discussion of valuation methods is impossible without reference to some generally accepted definition of value..."

(James C. Bonbmght).

Let us assume that the reason that prompted the assessment and the purpose of the assessment are known to us, and it becomes a question of choosing the type of value sought. To analyze this procedure, remember that the market pays only for those assets that bring him income from their use. To select an adequate standard of business value, such a main feature is a source of income generation.

In total, there are two sources of income generation when using the enterprise:

Income from the activities of the enterprise.

Income from the sale of company assets.

Accordingly, there are two types of value:

The value of a going concern. This value reflects the first source of income, assumes that the enterprise continues to operate and make a profit.

Enterprise asset value. This value, reflecting the second source of income, assumes that the enterprise will be disbanded or liquidated, i.e. the enterprise is evaluated element by element.

Here are the most commonly used types (standards) of value reflecting the sources of income generation:

Note.

The book value and market value of the enterprise are not full values ​​and were not included in the classification. The fact is that the book value includes only a part of the assets of the enterprise, the assets included in the balance sheet.

Market value is the value of the transaction that took place, i.e. reflects the past state of the object. An additional insight into cost standards is provided by a systematic approach. From point of view systems approach to the enterprise and its value, the listed cost standards acquire the following meaning:

The liquidation value is the cost of the elements (assets) included in the system (enterprise).

A reasonable market value is the value of an enterprise as a system of elements (assets), i.e. the cost of the elements (assets) plus the systemic effect (goodwill).

Investment value is the value of an enterprise as an element of a higher-order system (subsystem), i.e. the cost of elements (assets) plus the first order system effect (goodwill) plus the higher order system effect (corporate effect).

Generally accepted cost standards in business valuation are sets of valuation requirements.
There are four main business valuation standards;
reasonable market value;
reasonable cost;
investment value;
intrinsic (fundamental) value.
All of these standards assume that the assessment is done based on the so-called free, not forced (including those or other administrative interventions), transactions to acquire a business or its shares.
In particular, the buyer cannot be required to repay capital investments in the enterprise's investment projects that were previously started in order to receive subsequent significant positive flows. Under the conditions of a free transaction, the buyer of an enterprise (a block of shares) is ready to pay for it (the corresponding block of shares) to the maximum exactly as much as he himself can receive from profits for the entire period of operation of the acquired business ( cash flows) of the acquired business.
The main differences between these standards are as follows.
The fair market value standard assumes that the valuation of a business ( investment project) is made on the basis of information (on property, on the current and forecast market conditions and purchased resources, etc.), which is equally available to any potential buyer and seller of a business, to any investor. The business opportunities of any potential investor (in particular, project financing, sales) are also considered equal and unlimited.
The standard of fair value involves the valuation of a business on the basis of information that is equally accessible to a particular buyer and seller of the business. Their business opportunities are also assumed to be the same.
The investment value standard assumes the valuation of a business (investment project) only on the basis of the awareness and business capabilities of a particular investor (hence, according to this standard, the valuation of the same project will be different for different potential investors).
The standard of internal (fundamental) cost involves the valuation of a business (project) by a third-party independent appraiser based on his own knowledge and ideas about the business opportunities of the investor (which does not exclude the provision to the appraiser, at his request, of the information necessary for the assessment, which he will correct).
It is usually believed that the most objective valuation of a business (project) as such (regardless of who will run the business - implement the project) meets the standard of reasonable market value. At the same time, the most practical is the standard of investment value, which takes into account that in practice it is difficult to separate the assessment of the project as such from its capabilities. in the best possible way evaluate and implement that a particular investor possesses.
The influence of business valuation standards is most pronounced when forecasting cash flows (profits and losses) for the project. In terms of determining the discount rate, the impact of these standards is related to the extent to which commercial and financial information on the level and variability of investment income in the industry under consideration is available for different project evaluation subjects.
If the valuation uses only publicly available information of this kind, then the valuation is more likely to meet the fair market value standard. If non-public information is used, the valuation is more likely to meet the standard of investment value.
The fair market value standard, although it may seem too theoretic, is already used in the world (mainly in the Anglo-Saxon countries) to determine the taxable base for property tax in part financial assets enterprises that have on their balance sheet shares of closed subsidiaries. At the same time, the relevant laws require that the specified taxable base be the justified market value of affiliated closed companies, determined by special business valuation methods, proportionally reduced in accordance with the share of the parent company in the subsidiary.
This requirement causes the fact that Western corporations-taxpayers are forced - in order to protect themselves from the claims of the tax inspectorate - to involve in the assessment of the reasonable market value of their subsidiaries of closed companies and controlling stakes in them prestigious appraisal firms, in the role of which most often are large audit companies.
The fair value standard is most applicable in Western practice when minority shareholders contest through the courts transactions for the purchase of shares from them by larger shareholders of the same enterprises on the basis of claims against the latter regarding non-compliance with the specified standard in the preparation of the contractual sale price of the specified standard. The claim is that the majority shareholders in such cases often do not provide the transaction counterparty (minority shareholder) with the information about the true market prospects of the enterprise and the true market value of its property, from which they themselves proceed when determining the maximum allowable prices for the company's shares. Proved such information asymmetry can lead to the cancellation of the transaction in question.
Obviously, this situation has direct analogies in domestic practice, when larger shareholders and managers of privatized enterprises, on the basis of similar information asymmetry (often reinforcing it with the dissemination of false information about the underestimated prospects of the company), buy small blocks of shares from employees of privatized enterprises, who, moreover, the payment of wages is delayed.
The investment value standard assumes that business valuation is carried out on the basis of awareness of the property and market prospects (in sales markets and markets for purchased resources) of the enterprise of its specific investor (buyer or seller). The business opportunities of a specific investor also play a role - assets that he has outside the scope of a transaction for the sale and purchase of an enterprise (increasing its value "in the eyes" of such an investor) that can be used to develop a business instead of allocating special financing for the purpose of their acquisition or self-creation. The creative possibilities (business fantasy) of the investor are also important, etc.
Just like electricity will go between the poles when there is a potential difference between them, so the transaction for the purchase and sale of an enterprise (a block of its shares) will occur in conditions where the investment value of the same enterprise from the point of view of the seller is lower than its investment value from the point of view of buyer.
The investment value of the enterprise from the point of view of an external investor-buyer is called the external value of the enterprise.
The investment value of an enterprise from the point of view of its current managers is called the value of the enterprise *as is.
The standard of the internal (fundamental) value of an enterprise requires that the business be valued not only on the basis of information from an independent analyst, who must take into account in this assessment all the factors influencing the assessment, but also taking into account the fact that the specified analyst is not forced to request information from one of the interested in the assessment of the parties (seller or buyer of the enterprise), thereby exposing themselves to dependence on it.
The practical conclusion from the above is that an independent analyst (appraiser), in order to meet the standard of intrinsic (fundamental) value, must have own experience work in the industry of the enterprise in question and its own independent information about it.
The standard of internal (fundamental) value also assumes that the enterprise in question must be valued by all existing methods business valuation - with the receipt of the final valuation as a weighted average of all valuations determined by different methods (where specially justified coefficients of the appraiser's confidence in the results of applying one or another valuation method in a particular valuation situation should act as weight coefficients).

8.3. Cost standards

The movement that occurred in the system of financial resources of the enterprise, in the form of processes of formation and use, led to the emergence of cost flows already between the elements of the system of financial resources of enterprises of the national economy and acted as the cause of the value accumulated by the enterprise. Estimating the value of an enterprise is the final step in measuring the effectiveness of its cost relations.

It is the concept of business value that is considered today as one of the most key within the framework of management science, since we are talking, first of all, about the assessment of the correctness of any management decisions in terms of the growth of the company's value. Enterprise valuation answers the question of how much a business is or could be worth. At the same time, all interested parties may have different reasons for assessing the value of an enterprise from the standpoint of observing their own interests, finding a compromise between income and risk. The cases of application of the assessment are very diverse and affect the temporal, spatial, organizational, and managerial aspects of the existence of the system. For example:

Valuation of the company (closed, open);

Establishment of an acceptable price (from the point of view of the seller / buyer) of a transaction for the sale of a business (share in it);

Predictive assessment of the hypothetical value of the business (from business lines to property complexes) in perspective;

Assessment of the value of the enterprise in terms of ongoing measures for its restructuring;

Estimation of the cost of new organizational formations (subsidiaries) taking place after the restructuring of the complex;

Efficiency mark financial management, its forms, methods, tools;

Evaluation of the effectiveness of financial relationships (and their individual elements in relation, in particular, to various subjects of the transaction (accounts receivable, sale valuable papers, sale of property, etc.)) enterprises on the market, etc.

Business valuation, most often, has as its subject the value of individual business lines or the value of the entire enterprise (firm). A business line is defined as a set of property rights, long-term competitive advantages and related property (technologies, contracts for the organization of work) that provide income. Close concepts are: a product line, an investment project, long-term key contracts that determine the receipt of income or cost savings (for example, for long-term rental of equipment, purchase, placement of a manufactured product). Thus, a narrow interpretation of the business line implies the realization of a property interest that causes an increase in the value of the enterprise as a result (here we can recall indirect forms of value relations, forms of enterprise restructuring).

Evaluation of business lines can be carried out in cases where it is necessary:

Evaluate the existing business line (main, only) in order to establish on this basis the value of this specialized enterprise;

Estimate the cost of an investment project being implemented (at any of its stages) with a view to selling it or choosing the best available alternative;

Estimate cost authorized capital necessary for the implementation of the investment project;

Evaluate the transaction using one or another form of financial resources that ultimately ensures the greatest cost growth of the system;

Evaluate the totality of the business lines of the enterprise (as well as other assets owned by the enterprise, including its trademark and reputation in the market) in order to establish the resulting cost of this complex.

It is quite obvious that the assessment being carried out concerns the establishment of the value of the subject of the transaction, which determines, for a given business entity at this point in time, because the result of this is the final value of the entire value formation.

The assessment of the entire enterprise can also be carried out on the basis of the assessment of its property, and not along business lines (as discussed above). The need for this assessment is due to the fact that the market is not able to do this, and here there are cases:

It is necessary to estimate the value of a "closed" enterprise, whose securities cannot be traded on the stock market;

It is necessary to evaluate an enterprise whose shares are not admitted to the listing of the stock exchange as not meeting the established criteria;

It is necessary to evaluate an enterprise whose shares are traded on the stock exchange, but it is believed that they are valued biased (for example, for one reason or another they are underestimated by investors);

The level of development and trends of the stock market in the country does not allow trusting the prevailing stock prices.

The valuation of an enterprise is based on the valuation of its assets. However, it should be borne in mind that if the available data on similar transactions allow a fairly objective approach to the assessment of the tangible components of assets (at current market prices), then it is difficult with respect to intangible assets (patents, etc.).

One should not think that these approaches exclude the use of each other - there may be situations when the valuation of a business line involves a property approach, and the valuation of the entire enterprise - the establishment of the cost of a business line in its composition.

Evaluation of an enterprise (firm) can be carried out in cases where it is necessary:

Determine the correspondence of the price of shares listed on the market to their real value;

Justify the price of the enterprise when buying/selling it;

Determine the price of a closed company to establish the value of its shares;

Show the value of the enterprise to potential investors.

The initial guidelines in determining the value of the enterprise are: 1) the enterprise is assessed as functioning; 2) the enterprise is evaluated from the point of view of its liquidation (liquidation value). At the same time, the main approaches are: a) profitable; b) market; c) expensive. The fact that the assessment can be carried out using different approaches and assumptions regarding the development of the situation also determines its different cost value. When conducting an assessment, the following interpretations of value can be used:

The market value is established in the case when the parties interested in the transaction have all the information;

Investment value - implies the value of the enterprise for a particular investor;

Economic cost - seen as the cost of a continuing business;

Present value - involves determining the cash flow discounted at a certain rate;

Fundamental value is seen as intrinsic to that type of asset, regardless of the characteristics of a particular investor;

The liquidation value implies the value of the enterprise determined taking into account the expenses necessary for liquidation.

If the enterprise is evaluated from the point of view of the current one, then income or market approaches are applied.

In the income approach, the value of an enterprise is established on the basis of its possible income streams, which are provided by this business. In this case, the property of the enterprise that ensures its functioning is not taken into account, because. otherwise (when selling property), business income will become impossible.

The market approach assumes that when valuing an enterprise, the cost of an analogue enterprise, the sale of which took place in the past, is taken into account. It can be difficult to find such an enterprise, because we are talking about identical branches of operation, size, and other key business parameters.

The value of a liquidated enterprise is assessed using the cost approach, which involves assessing the market value of the assets of the enterprise remaining after deducting the debt. Of course, this approach involves the valuation of assets not in terms of the sum of their market values, but taking into account their prompt sale, which means sales at a discount from the market value. As a rule, the liquidation value turns out to be lower than that established for an operating enterprise (part of the assets will not be sold at all at the time of interest, and some will be sold at reduced prices, etc.)

When evaluating a business, generally accepted standards of value are: reasonable market value; reasonable cost; investment value; fundamental (intrinsic) value.

The application of the fair market value standard assumes that the enterprise is valued on the basis of all necessary information, access to which is not limited for either the seller or the buyer. The basis of this, in a sense, is the ideal market model, the efficiency of transactions, the information content of all interested parties, minimum value transactions for ongoing transactions. Despite these serious requirements, in some countries the practice of this approach is already taking place. For example, in some Anglo-Saxon countries, for the purpose of objectivity of taxation, the practice of assessing the share of participation of an enterprise in closed subsidiaries. Business taxpayers are here to avoid problems with tax authorities are forced to involve reputable audit firms in the assessment. The main approach to valuation is the market one.

The fair value standard assumes equal availability of information for both the buyer and the seller. The requirements of this approach are the absence of information asymmetry, i.e. it is assumed that all those who need it have the same quality of relevant information. Situations are known when small shareholders protest through the courts transactions for the sale of shares. The reason for this is the asymmetry of the available information, i.e. big holders necessary information about the real value of the shares are deliberately hidden from small shareholders in order to benefit from the acquisition of these securities.

The investment value standard assumes that the main factor is the ability of a particular investor to make a greater profit than that estimated by the seller, i.e. the information used here is specific to the seller, the buyer in each case. This standard determines the awareness of the participants in the transaction about the prospects for the development of the enterprise. The transaction will take place if the investor evaluates the prospects of the subject of the transaction higher than the seller. Note that in addition to the difference in approaches (seller and investor) to the assessment of a given enterprise, the ability of a particular investor to ultimately extract more profit from the investment object may be important. For example, through the use of one's own business reputation, available opportunities (for the provision of equipment, placement of contracts, establishment of business relations, development this business). Obviously, the investment value from the point of view of various investors will differ due to the vision of other development prospects and investment returns from this business.

The intrinsic value standard assumes an assessment by an independent third-party appraiser based on his experience and knowledge. It is assumed that the resulting assessment is based on the use of all available assessment methods, taking into account the analyst's experience in the business being assessed, using independent and complete information about the subject of assessment. Thus, the appraiser chooses from several assessment options, in his opinion, the most objective and reliable, the most consistent with the real state of affairs.

The table gives an idea of ​​the dependence of the assessment standard on the availability of the information used.

Cost standards and information used

In addition to the named and generally accepted assessment standards, national standards adapted to a particular country are also used.

Business valuation, like any other scientific and practical direction of human thought, is characterized by the presence of specific terminology. Therefore, the article must begin with a definition of the terms used below, which should allow the author and readers to communicate in the "same language".

Estimation terminology.

Since business valuation is just beginning to develop in Russia, it is quite natural that there is no consensus in the terminology used. And as practice has shown (including the forum on the site), the main disagreements and lack of mutual understanding of opponents when discussing the process of business valuation is precisely the different interpretation of the terms used.

In such a situation, the only possible way to find a common language is to use some standard of terms. And here you can go in two directions:

1. Use Russian special standards ( GOST R 51195.0.02-98 or ROO standards);
2. Use foreign accumulated experience in business valuation.

The second way is probably preferable, since it will reduce time costs and allow you to communicate in the same language with Western colleagues. Furthermore, Russian standards are not specific to the valuation of a business, they are written for the valuation of property in general.

The greatest methodological interest, when considering business valuation, is the BSV standards of the American Society of Appraisers, which have become the concentration of American experience ( ASA). The business valuation terminology is defined by the BSV-I standard adopted in 1988 and the amendments to the BSV-I standard adopted in 1991. Here are the main definitions:

• Evaluation (appraisal, valuation) - the act or process of determining the value.
• Business valuation - the act or process of preparing an opinion or determining the value of an enterprise or the share of shareholders in its capital.
• A business appraiser is a person who, thanks to his education and special training, as well as the accumulated experience, is qualified as a specialist who is authorized to evaluate the enterprise and / or its intangible assets.
• Appraised value - value according to the opinion or determination of the appraiser.
• Going concern value - the value of a going concern or the share of shareholders in its capital.
• Book value - the difference between the total value of assets (minus depreciation, used resources and amortization) and the total amount of liabilities, in accordance with the balance sheet data. It is synonymous with net book value, net worth and shareholder's equity.
• Fair market value - the price at which an act of sale is made when both parties are interested in the transaction, act not under duress and have enough complete information about the terms of the transaction and consider them fair.
• Goodwill, the "good name" of the company (goodwill) - intangible assets of the company, which are made up of the prestige of the enterprise, its business reputation, relationships with clients, location, range of products, etc. These factors are not separately singled out and / or are not evaluated in the company's statements but serve as a real source of profit.
• Appraisal approach - general way valuation that uses one or more valuation methods.
• Cost estimation method (appraisal method) - a method of determining the cost, which varies depending on the approach to estimating the cost.
• Cost estimation procedure (appraisal procedure) - operations, methods and technique when performing the steps of the costing method.

Assessment goals.

"The method of evaluation should be determined by the reasons for its implementation." (from Howard Low Review, May 1966)

Before discussing the approaches and methods used in the business valuation process, it is necessary to clearly understand that the entire valuation process directly depends on the reasons that prompted it and the goals pursued by it. At the same time, the same object on the same date has a different value depending on the purpose of its valuation, and the value is determined various methods. At first glance, this seems at least strange and an anecdote comes to mind - " How much do you need?"But don't jump to conclusions.

First, we will determine for what purposes a business valuation can be carried out, and then we will find out the reasons for this difference. Here is an approximate classification of the existing business valuation goals by various entities:

We see how different the purposes of evaluation are. And now let's imagine whether the cost of acquiring an enterprise for the implementation of an investment project can be equal to the cost of forced bankruptcy, or the total value of shares of the real value of the business in terms of its assets? Yes, but only in very rare cases.

In reality, the sought value of the business will be correlated with the purpose of the assessment through the value itself. Since different purposes of valuation involve the search for a different type of value.

cost standards.

"A reasonable discussion of valuation methods is impossible without reference to some commonly accepted definition of value..." (James C. Bonbmght)

Let us assume that the reason that prompted the assessment and the purpose of the assessment are known to us, and it becomes a question of choosing the type of value sought. To analyze this procedure, remember that the market pays only for those assets that bring him income from their use.

To select an adequate standard of business value, such a main feature is a source of income generation. In total, there are two sources of income generation when using the enterprise: 1) Income from the activities of the enterprise, 2) Income from the sale of the enterprise's assets.

Accordingly, there are two types of value:

1. The value of a going concern. This value reflects the first source of income, assumes that the enterprise continues to operate and make a profit.
2. Enterprise asset value. This value, reflecting the second source of income, assumes that the enterprise will be disbanded or liquidated, i.e. the enterprise is evaluated element by element.

Here are the most commonly used types (standards) of value reflecting the sources of income generation:

Comment. The book value and market value of the enterprise are not full values ​​and were not included in the classification. The fact is that the book value includes only a part of the assets of the enterprise, the assets included in the balance sheet. Market value is the value of the transaction that took place, i.e. reflects the past state of the object.

An additional insight into cost standards is provided by a systematic approach. From the point of view of a systematic approach to the enterprise and its value, the listed cost standards acquire the following meaning:

• The liquidation value is the cost of the elements (assets) included in the system (enterprise).
• A reasonable market value is the value of an enterprise as a system of elements (assets), i.e. the cost of the elements (assets) plus the systemic effect (goodwill).
• Investment value is the value of an enterprise as an element of a higher-order system (subsystem), i.e. the cost of elements (assets) plus the first order system effect (goodwill) plus the higher order system effect (corporate effect).

The next step after identifying the required cost standard reflecting the objectives of the assessment is the selection of the necessary procedures and methods of assessment.

Procedures and methods of assessment.

In the theory and practice of business valuation, by analogy with real estate valuation, there is traditionally a classification of approaches to business valuation according to the initial data used:

The BSV-I standard defines these approaches as follows:

• Market approach - a general method for determining the value of an enterprise and / or its equity, within which one or more methods are used, based on a comparison of this enterprise with similar investments already sold.
  BSV-VI )
• The income approach is a general way of determining the value of an enterprise and/or its equity, which uses one or more methods based on the suppression of expected returns.
  (the approach itself is regulated by the standard BSV-VII )
• The asset based approach is a general method for determining the value of an enterprise and/or its equity, which uses one or more methods based directly on the calculation of the value of the enterprise's assets minus liabilities.
  (the approach itself is regulated by the standard BSV-IV )

These approaches correspond to the following methods:

It should be noted that none of the listed approaches and methods is not only mutually exclusive, but also complement each other. Of course, it would be strange to use all possible methods to evaluate one object. Usually, when assessing a business, depending on the objectives of the assessment, the desired value, the conditions set, the state of the object itself and the state of the economic environment, a combination of two or three methods is used that is most appropriate in a given situation.

When choosing the necessary methods for conducting the business valuation process, it is necessary to present the advantages and disadvantages that each approach and method carries.

The final choice of the necessary methods is carried out from the standpoint of common sense. For example:

• If the purpose of the valuation is to determine the salvage value, then the application of the analogue company method and methods income approach doesn't make sense.
• The investment value will be determined using the income approach methods.

When the choice of the necessary evaluation methods has been made, the calculation procedures come into play. At the end of the calculation process, 2-3 digits appear (depending on the number of selected methods) reflecting the value of the enterprise. The final value of the enterprise value is determined by one of two basic methods: mathematical weighting and subjective (expert) weighting. When choosing specific gravity Each evaluation method takes into account the following factors:

• The nature of the business and its assets;
• The purpose of the valuation and the definition of value used;
• The quantity and quality of data supporting each method.

Cost adjustment.

Whether the value of a business is calculated using forward-looking methods or historical data, business valuation relies on a number of key variables. Their relative importance may vary depending on the situation, but the value judgment is influenced by internal variables that need to be adjusted, such as:

1. The size of the estimated business share (control or minority);
2. Possession of voting rights;
3. Liquidity of the share and/or business;
4. Provisions restricting property rights;
5. The financial position of the property being valued;
6. And etc.

Moreover, the sum of the values ​​of all individual blocks of shares (shares of the business) may be equal to or may differ from the value of the enterprise as a whole. In most cases, the sum of the costs of individual packages (shares) is less than the value of the entire enterprise if it were acquired by one buyer. This fact is explained by the fact that the ownership of an enterprise, assessed as a whole, is associated with other rights and interests than the sum of all interests taken on a minority basis.

Most adjustments are made on the basis of expert methods.

The role of business (company) PC valuation in the economy

The reasons for the need to assess MS in modern economy, relate:

· The RS valuation allows the seller or the buyer to “put up” the product at the most realistic price, since the RS takes into account not only individual costs and expectations, but also the situation on the market as a whole, market expectations, general economic development trends, and the assessment of this object by the market.

· Knowing the market value allows the owner of the object to optimize the production process, if necessary, taking a number of measures aimed at increasing the market value of the object, maintaining the gap between the individual (internal) and market value in case the latter is exceeded.

· Periodic market valuation improves management efficiency and, consequently, prevents bankruptcy and ruin.

· For the buyer-investor, valuation helps to make the right investment decision.

· Valuation in the macroeconomic aspect is one of the levers of management and regulation of the economy by the state (valuation is of particular importance in the management of state and municipal property).

The value of the company (business) is a characteristic that reflects the efficiency of the company. It depends on a number of factors.

Value Creator- a characteristic of the activity on which the effectiveness of the functioning and development of the enterprise depends.

For the correct definition of value creation factors (VSF), the following principles must be observed:

1) FSS should be directly linked to the creation of value with the necessary detail at all levels of the organization,

2) FSS should be set as targets and measured using both financial and operational measures. key indicators efficiency,

3) The FSS should reflect both the level of performance achieved so far and long-term growth prospects.

Types of value used in business valuation. cost standards.

Depending on the objectives of the assessment, the completeness of the assessed rights to the business different kinds costs can be grouped into two groups:

Value in exchange as an expression of exchange value - characterizes the ability of a business object to be exchanged for money or other goods, is of an objective nature and underlies the operations of buying and selling a business, pledging it, including at interest, etc.

Value in use as an expression of use value - due to the usefulness of the business object (the amount of income received) for a certain variant of its use, is subjective, reflecting the existing opportunities for the operation of the object by a specific owner, not related to the purchase and sale of the object and other market transactions.

In world practice, certain concepts of business value have developed and business value standards:

1. Fair market value (standard) is the most probable price that can be obtained for this enterprise at a given point in time (at a given economic situation) under typical conditions:

Full awareness of the parties about the state of affairs at the enterprise;

· Optimal time buying and selling;

· The buyer and the seller act without pressure and are not in force majeure circumstances;

· The buyer and the seller use the credit conditions prevailing at the time of the sale (preferential loans are not used).

2. If typical conditions are not met, the resulting price is called simply market value .

3. Reasonable cost (standard) – the value of the non-controlling interest in the capital of closed joint-stock companies no liquidity discount.

4. Investment cost (standard) - the cost of the enterprise for the implementation of a specific investment project. In this case, the use of this enterprise (under this project) is not always optimal (it's just that at the moment there is no more suitable enterprise for the implementation of the planned project), and therefore the investment value is usually somewhat higher than the reasonable market value.

5. Intrinsic or fundamental value (standard) - this is an analytical assessment of the value of the enterprise, which is determined not only on the basis of the results of its current activities, but also taking into account:

· Availability, composition and completeness of equipment in technological chains;

· Availability, composition, qualifications and experience of managers and specialists;

· Prospects for the development of the enterprise (profit) as an integral complex.

This is the most realistic and objective assessment of the value of the enterprise. In the stock market, experts distinguish between exchange rate and intrinsic value of shares. The intrinsic (or real) value of shares is determined by the intrinsic (or fundamental) value of the enterprise. It makes sense to buy the shares of this enterprise if the intrinsic value is higher than the exchange rate, and to sell if the prices are inversely related.

6. The value of a going concern is the value of a going concern with equity, TMZ, constant labor force intangible assets (patents, goodwill - business reputation, prestige, connections, etc.) and not under the threat of bankruptcy.

7. Liquidation value - this is the net amount that the owner can receive in the liquidation and sale of assets.

8. Book value - is determined according to the balance sheet as the sum of its assets minus accumulated depreciation, as well as the amounts of short-term and long-term liabilities of the enterprise.

One or another type of enterprise value is determined depending on the formulated purpose of the assessment. In addition, the type of value determines the set of methods by which it can be determined.

The next step after identifying the required cost standard reflecting the objectives of the assessment is the selection of the necessary procedures and methods of assessment.