Mar 03 2018

The Business

Posted by domain admin in News

Model is needed for a proper understanding of business processes, which greatly simplifies the evaluation process and helps to ensure a more accurate result. The most reliable results when analyzing the operation of the business gives a diagnosis of its financial condition, since every aspect of the impact on the financial situation of the business. For example, seasonality of the company (firm). In the process of diagnosis by means of financial indicators (ratios) reveals business trends. Typically, when evaluating the business value of a well-known set of financial performance ratios are considered: – ability to pay – financial stability – profitability – a business activity. It should be noted that in various areas – manufacturing, services, consumption – the "normal" value of these coefficients will be different. No match "rules" the value of these factors, in turn, reduce the cost of business.

External factor (industry) – which was discussed above, characterized the relationship with suppliers, intermediaries and clients. This is also the competitive environment. The main influence on the business value across industries have dynamics and production, as well as inherent risks of the industry. Impact on the industry functioning of the business has, in turn, and the state (as an external factor) through political, economic, demographic, cultural and other factors. State and business are parts of a whole and therefore can not be considered in isolation. Gross domestic income, inflation, meaning interest rates, fiscal policy, and much more – all of these factors are considered when assessing the value of the business. Thus, a comprehensive analysis of the research object allows you to gain an understanding of utility and, accordingly, the cost of business for the owner and the potential buyer. The principle of utility, along with principles such as the substitution principle and the expectations are prerequisites on which the valuation of the business. Under the principle of utility business has a value in the If it is useful to a potential buyer.

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