GOALS, OBJECTIVES AND MODERN APPROACHES TO ASSESSMENT AND MANAGEMENT OF COMPANY COST

Abstract

The authors analysed the components and elements of effective company value management. First, the purpose and objectives of a comprehensive assessment of the company’s value in current conditions are highlighted. A description of the existing approaches and methods for assessing the value of a business is given. Finally, the strengths and weaknesses of the business valuation methods of the considered strategies are highlighted. The valuation of a company is a procedure for establishing the market value of an economic entity. The need for this procedure may appear in certain legal situations and gives the business owner a unique advantage over his competitors. Estimating the value of a business is a rather laborious and lengthy process, which includes several stages and requires specific knowledge and experience from a specialist [1]. To carry out its activities, each business entity must own the property of which it is the owner, i.e., the company’s assets, acting as its economic resources in the form of total property values used to generate income. Therefore, any business’s success depends directly on its owner’s knowledge of the field in which it operates. In addition, the entrepreneur needs to know the actual value of the company or firm he is interested in. Suppose an entrepreneur has reliable data about the business entity of interest. In that case, he can easily dictate the transaction’s terms, rationally assess his financial capabilities, receive loans on the most favourable terms, and participate in tenders and various auctions.