Methods and methodology for increasing the value of the company. How to increase the value of a company before selling it Is a sharp increase in the value of a company possible?

Introduction

1.2 Basic approaches to enterprise valuation

2. Analysis of the financial condition of Nata LLC

2.1 Organizational and economic characteristics of the enterprise

2.2 Analysis of the financial condition of the enterprise

2.3 Analysis of the probability of bankruptcy of an enterprise

3. Measures to increase the market value of Nata LLC

Conclusion

Bibliography

Glossary

Application

Introduction

Crisis situations, to overcome which appropriate preventive measures have not been taken, can lead to excessive imbalance of the economic organism of the enterprise. It may be unable to continue the financial support of the business process, which qualifies as bankruptcy.

Increasing the market value of an enterprise in a crisis helps prepare it for the struggle for survival in a competitive market. The process of assessing the business of enterprises serves as the basis for developing its strategy. It identifies alternative approaches and determines which of them will provide the company with the maximum efficiency, and, consequently, a higher market price.

Evaluation is one of the stages in the implementation of the anti-crisis management procedure, which in turn is designed to ensure the effective functioning of the enterprise. Enterprise valuation not only justifies reasonable prices when buying and selling a business or evaluating it as operating, but can also be used to make better management decisions at an enterprise.

The purpose of the work is to develop measures to increase the value of an enterprise in a crisis situation.

The goal set in the work predetermined the need to solve the following tasks:

Consider methods for estimating the value of an enterprise;

Conduct an analysis of the financial condition of the enterprise;

Analyze the likelihood of a crisis situation at the enterprise;

Propose measures to increase the value of the enterprise.

The subject of the study is the socio-economic relations that arise at the LLC Nata enterprise in the process of increasing its market value.

Object of study - Nata LLC

The work used general scientific methods for collecting, processing and systematizing information, methods of structural and dynamic analysis, the calculation and analytical method, the method of graphical presentation of information, modern methods for assessing the probability of bankruptcy.

The practical significance of the work is determined by the fact that its results can be a theoretical and methodological basis for the formation of an effective mechanism for preventing the bankruptcy of enterprises.

The structure of this work is determined by the goals and objectives of the study and consists of an introduction, three chapters, a conclusion, and a list of references.

1. Theoretical foundations of enterprise value management

1.1 The concept and factors affecting the market value of the enterprise

Appraisal activity consists in obtaining an idea of ​​the value of an object or the size of the owner's share at a particular point in time.

A business can be valued differently depending on the purpose of the valuation and the circumstances. Therefore, an accurate determination of the value is required for valuation.

Market value - the most probable price at which this object can be alienated on the open market in a competitive environment, if the parties act reasonably, having all the necessary information, and provided that any extraordinary circumstances do not affect the value of the transaction, i.e. . when :

One of the parties to the transaction is not obliged to alienate the object of assessment, and the other party is not obliged to accept the performance;

The parties to the transaction are well aware of the subject of the transaction and act in their own interests;

The object of assessment is presented to the open market in the form of a public offer;

The price of the transaction is a reasonable remuneration for the object of assessment, and there was no compulsion to complete the transaction in relation to the parties to the transaction from anyone;

The payment for the appraisal object is expressed in cash.

This type of value is applied to all issues related to federal and local taxes. It is the market value that is determined when evaluating for the purposes of buying and selling an enterprise or part of its assets.

The market value is objective, independent of the desire of individual participants in the real estate market and reflects the real economic conditions that are developing in this market.

The business valuation is based on the assumption that its current value is equal to the value of future benefits (income) that the owner can receive as a result of owning this property (business).

Indeed, a reasonable buyer would only agree to invest in a company if the present value of expected property returns is at least equal to the purchase price. Similarly, a rational seller would not normally sell his property if the present value of the same expected returns is greater than the selling price. Thus, a sale can in principle only occur at a price equal to the present value of the income that secures the ownership of the property.

The cost is not always indicated by a single number. In most cases, as a result of valuation activities, the appraiser determines a reasonable range for value.

Company value management is a modern management strategy focused on increasing the investment attractiveness of competitive advantages and stable operation in the market environment in the long term. It is based on a systematic approach to the use of diverse factors that form value, taking into account the conflicting interests of various groups of subjects, one way or another connected with the company. It is noted that increasing the market value of the company is a strategic goal of management. At the same time, the growth of the wealth of the owners should be accompanied by an adequate increase in the income of hired personnel, an improvement in living conditions, and the contribution of companies to the development of the territory in which it is located. At the stage of formation and development of a business, the growth of its value, as the study showed, is carried out mainly through the use of breakthrough technologies, know-how, innovation and risk management. When researching traditional technologies and management approaches, it is difficult to gain positions and gain a foothold in a competitive market.

The value creation factor is presented as some element of the socio-economic system that affects the quantitative and qualitative parameters of the company, on which its market price depends, and cost management is the management of the system of value factors.

To effectively influence value factors, it is necessary to establish their subordination, to determine which of them has the greatest impact on the movement of value based on the sensitivity indicator, which expresses the degree of value increment relative to the increment of the factor. Sensitivity shows by what percentage the value of the business will increase or decrease with an increase in the value of the factor by 1%.

Identification and grouping of factors according to the principle of uniformity of influence on the value of the company allowed the author to distinguish two conditional groups:

External factors that arise regardless of the will of the company's management. It is desirable to predict their impact and, as they appear, to correct the management strategy and tactics. These include: economic conditions for the existence and development of business, social, political, legislative, the situation on the market and in the region, and others;

Internal factors related to the actions of management, industry specifics and the location of the enterprise itself.

There are four groups of internal factors: the state of the property complex, financial factors, social factors, image factors.

The property complex is understood in a broad interpretation, including tangible and intangible assets, the level of technology, know-how, diversification of production, adaptability to the market environment.

Financial factors - volume, structure, sources of formation, directions of use.

The peculiarity of these two groups of factors is that they themselves have a value and are directly involved in the formation of the value of the company.

Social factors (social potential of the company) - the quality of management personnel, the level of professional training of employees, the social atmosphere, labor motivation, traditions, the social maturity of the team, the conditions for its development have an indirect impact on the movement of the company's value, namely through the quantity, quality of labor, its performance. As you know, labor creates surplus value. Higher-quality productive labor accelerates the growth of the company's value.

A special group is made up of image factors that form a positive perception of the company: product design; customer relations; brands and trademarks; product distribution system; product promotion system; market positioning and leadership; communications.

The high image of the company attracts customers (buyers, investors), forms a higher market price, which ultimately contributes to the growth of the company's value.

The study revealed that, despite the significant impact on the company's value of social and image factors, they are usually not taken into account in the practice of business valuation, which significantly underestimates the real price of business units.

So, the effectiveness of company cost management depends on the selection of a system of indicators that would adequately reflect the movement of value in the monitoring process. As such, the paper analyzes the possibility of using the following parameters: growth in sales volumes, income before interest and taxes, net present value, weighted average cost of capital and its servicing, economic value added, share prices on the stock market. At the same time, the increase in the value of the company will occur with the growth of these indicators.

Management of the company, focused on increasing its value, involves the allocation of value factors and the corresponding impact on them. But in addition to factors or drivers of value, various corporate events can work to increase it, for example, preparations for the initial public offering of the company's securities or various integration events. Let us consider the mechanisms of impact on the company's value of these corporate events.

Conducting an initial public offering (Initial Public Offering, IPO) is not a mandatory moment in the life of every company. The relevance of conducting an initial public offering is determined by the management of each individual company, taking into account its development strategy. In the light of the life cycle theory, every enterprise goes through several stages: birth, growth, maturity and bankruptcy. At any stage of the life cycle, a company must have financial flexibility, that is, the ability to raise funds from various sources, adjust the level of solvency and activities in accordance with changing conditions. It is at the stage of maturity that companies most need an IPO for their further growth and development.

Entering the public market is associated with the costs of organizing an IPO and paying for the services of financial advisors, underwriters, lawyers, etc., as well as the costs of information disclosure. Therefore, a company prefers to make a decision on an IPO at a time when the potential benefits (such as an increase in the value of the company, liquidity of shares, an increase in the subjective valuation of shares) exceed these costs, which usually occurs at a fairly mature stage of their functioning (life cycle).

Proponents of the "life cycle" theories identify, in addition to those mentioned, other important motivating reasons for the decision to transform the company into a public one:

It is much easier for a potential investor to single out a promising company, in his opinion, if it is public;

Shares in a public company are sold at a higher price than the price offered in a direct sale;

The high price of shares of companies in the stock market can lead to an increase in the competitiveness of the company's products. Staying in the status of a public company in itself can create additional added value for it. In addition, it also increases the level of trust in the company from other investors, customers, creditors and suppliers.

In the future, this will allow us to turn not only to debt, but also to equity financing on much more favorable terms. In general, the implementation of this long-term development strategy allows you to consistently and maximize the value of the business.

In the conditions of active development of the Russian economy, all actions of companies are aimed at expanding their scope of activities. The external development of the enterprise is based on the sale and purchase of assets, divisions, mergers and acquisitions, as well as activities to maintain corporate control.

In general terms, the direction of business restructuring can be represented by the following diagram (see Figure 24.4).

In strategic direction, the goal of expansion is to increase the value of equity through the following actions:

Acquisition of existing enterprises (creating a new company is a longer and more laborious task than acquiring control over an existing one);

Obtaining managerial, production and technological benefits in the event of a merger of various companies (“add-on effect”, if the system fills in the missing elements);

Opportunity to diversify and reduce the overall risk when merging companies with different profiles of activity;

Implementation of competitive advantages as a result of strengthening the position of the combined company in the market;

Obtaining a synergistic effect that occurs if the properties of the system as a whole exceed the simple sum of the properties of its individual elements.

There are certain differences in the interpretation of the concept of "merger of companies" in foreign theory and practice and in Russian legislation. In accordance with Russian law, a merger is understood as the reorganization of legal entities, in which the rights and obligations of each of them are transferred to a newly established legal entity in accordance with the deed of transfer. For example, if company A merges with companies C and C, then a new company B may appear on the market (B = A + C + C), and all the others will be liquidated.

In accordance with generally accepted approaches abroad, a merger is understood as any association of economic entities, as a result of which a single economic unit is formed from two or more previously existing structures. In foreign practice, a merger can also be understood as the merger of several firms, as a result of which one of them survives, while the rest lose their independence and cease to exist. In Russian legislation, this case falls under the term "affiliation", which implies that the activities of one or more legal entities are terminated with the transfer of all their rights and obligations to the company to which they join (A = A + B + C).

All mergers and acquisitions are concluded in accordance with federal legislation in force in the corporate sphere, on the securities market and in antimonopoly regulation. Companies must meet the following conditions:

Only ordinary shares are involved in the exchange on both sides;

Conditional payments are prohibited;

The company involved in the transaction must have at least two years of experience as an independent organization;

The acquired company must not get rid of a significant share of the assets within two years;

The consent of at least 2/3 of the shareholders is required to make financial decisions.

In modern corporate management, there are many different types of mergers and acquisitions of companies. The most important features of the classification of these processes include: the nature of the integration of companies; the nationality of the merged companies; attitude of companies towards mergers; way of combining the potential; merger conditions; fusion mechanism.

The Russian practice of property redistribution has created a feeling for many that acquisitions are a relatively simple, cheap and almost the only way to significantly increase the value of a business. However, the experience of developed economies shows that this is far from the case. Companies, as a rule, are acquired with a large premium to their market price (the owners usually demand a 30-40% premium to the market price of shares for a voluntary relinquishment of control, and when they try to buy a significant block of shares on the open market, their price immediately rises). In such a situation, the shareholders of the acquiring company can consider the transaction successful only if it creates additional value to cover the premium, i.e., increases the total profitability of the assets and, accordingly, their shareholder value.

The synergistic effect can manifest itself in two directions: direct and indirect benefits.

The direct benefit is a tangible increase in cash flows. The specific value of the increase in cash flows can be calculated in the process of planning an acquisition or merger of companies. The direct benefit analysis includes the following steps:

Estimating the cost of the reorganization prior to the reorganization based on projected cash flows;

Valuation of the combined company based on post-reorganization cash flows;

Calculation of value added based on a discounted cash flow model formed through managerial, operational and financial synergy.

Operational synergy effect - savings on operating costs due to the integration of marketing, accounting, and sales services. In addition, the merger can lead to a strengthening of the company's position in the market, obtaining technological know-how, a trademark, which contributes not only to cost reduction, but also to product differentiation. In addition to cost savings, product differentiation achieves economies of scale (the ability to do more work in the same production capacity, which ultimately reduces the average cost per unit of output).

Management synergy - savings through the creation of a new management system. The merger of enterprises can be carried out through horizontal and vertical integration, as well as through the creation of a conglomerate. The purpose of the merger is a more efficient management system.

Financial synergy - savings by changing and differentiating funding sources. Traditionally, the fact of a company merger causes an informational effect, after which the value of the company's securities, and in particular shares, increases even if no real economic transformations have been carried out. Thus, a merger (accession) boosts the growth of the company's investment attractiveness on the part of potential investors, which contributes to the inflow of investments, the emergence of additional sources of financing, and increases the company's reliability in the eyes of creditors. In general, this type of synergy helps to reduce the risk of investing in a company, which ensures the emergence of cheaper sources of financing. In addition, the reorganization provides some tax advantages (the financial statements of the parent organization are prepared solely for tax purposes).

An indirect benefit is that the shares of the combined company may become more attractive to investors and therefore their market value, reflecting the increase in cash flows, will increase. Stock market analysts and investors generally expect that synergistic mergers will not only make a company more profitable, but may also accelerate its growth, strengthen its market position, or reduce earnings fluctuations, because the cyclical activity of one enterprise is compensated the cyclical nature of the other.

The economic benefits of the proposed merger will arise only if the market value of the merged company is higher than the sum of the values ​​of the firms forming it before they were merged.

Let us assume that the company formed after the takeover has the market value of RU AB, and the values ​​of companies A and B before their merger are equal to RU A and RU B, respectively, then the benefit from the merger W AB will be obtained from the expression:

^ = RU AB - (RU A + RU B).

The merger is economically justified if this difference is positive.

The informational effect of a merger, combined with a direct synergy, increases the market value of the shares or changes the P/E multiple. The greater the value of the P/E multiplier of the acquiring company compared to the same indicator of the acquired company, and the difference in the amount of profit received, the greater the increase in the P/E multiplier of the acquiring company as a result of the merger.

With the development of a market economy in Kazakhstan, it became possible to invest in a business, buy and sell it, i.e. business has become a commodity and an object of evaluation. Valuation is necessary for corporatization, reorganization, development of enterprises, the use of mortgage lending, participation in the stock market.

The results of the valuation affect almost all performance indicators of the enterprise. To achieve success in the activities of any company, the manager, when making each serious management decision, must calculate whether its implementation will increase the value of the company. In the West, there is an axiom: "It is necessary to use the valuation of the enterprise to make better management decisions"; in Kazakhstan, such an approach is still being intensively studied, but it is rarely used in practice.

Usually, to improve the quality of management, individual structural units, processes, types of products, activities are analyzed, while it is necessary to study the entire structure as a whole, taking into account external and internal relationships. An enterprise is a complex system that uses economic resources (labor, natural and financial), changing with respect to the types of products (works, services) produced, methods of its production and sale. It is possible to analyze simultaneously all the components of the structure on the basis of an assessment of the value of the enterprise (business).

In a condensed form, the essence of the concept of enterprise value management is that from the point of view of the shareholders (investors) of the enterprise, management should be aimed at ensuring the growth of the market value of the enterprise and its shares, since such growth allows shareholders (investors) to receive for them the most significant Compared with its other forms, income from investments in an enterprise is exchange rate cash income from the resale of all or part of their shares or exchange rate non-monetary income, expressed in an increase in the value (value) of net assets owned by shareholders, and hence the amount of their own capital. An increase in the value of net assets corresponds to an increase in the value of both the enterprise and its shares. Therefore, in the concept of enterprise value management, emphasis should be placed on the growth of the enterprise value: "Management of the enterprise value is reduced to ensuring the growth of the value of the enterprise and its shares."

In a market economy, more and more domestic enterprises are paying attention to the economic strategy of their development. Changes in the market economy make clear the need for strategic choices. A well-formed strategy allows an enterprise to reliably assess the economic opportunities for its development and growth, to concentrate strategic resources on the most promising areas of its activity.

Therefore, there is an urgent need to develop theoretical and methodological approaches to the development of managerial impacts on business using the assessment of the value of an enterprise (business) as the main criterion for the effectiveness of management based on valuation management, value-oriented management.

An enterprise business valuation is a set of measures necessary to determine cost indicators, which can subsequently be taken as the price of an enterprise as a commodity. Business valuation allows you to identify how much the services, products and activities of the enterprise in general are in demand.

In this paper, to determine the market value of an object, we reviewed and used methods widely used in valuation practice and procedures recommended by international valuation standards.

There are three approaches to assessing the value of assets: income, comparative and cost.

According to the income approach, the value of an asset is determined by its expected returns. Two common methods of the income approach are the direct capitalization method and the discounted cash flow method.

When using the capitalization method to obtain the value of future earnings, the amount of annual income is divided by the capitalization rate. At the same time, profit before or after tax is most often taken as income. The capitalization rate must match the definition of income used.

The discounted cash flow method calculates expected future cash flows available for distribution to investors, which are then recalculated to present value using a discount rate that reflects the risk of those cash flows.

The comparative (market) approach is based on the assumption that the value of assets is determined by the price for which they can be sold in the presence of a sufficiently formed market. The comparative approach is based on the assumption that completed transactions are the result of judgments of buyers and sellers regarding the value of objects and contain information indicating their market value. In the process of comparative analysis, the prices of objects similar to the one being assessed are adjusted for differences in the main characteristics between the object of assessment and the object-analogue.

The cost approach includes an assessment of the cost of reproduction / replacement of an object and the definition of various types of wear: physical, functional and external.

The choice of a business valuation method directly depends on the purposes for which it is carried out. For the purposes of managing the company's value, several methods of assessment can be used, and accordingly, several indicators of value. These indicators are not subject to integration, they are analyzed separately, compared with each other and serve to make various management decisions.

The property complex owned by LLP "Xxx" (assets coming in the future) was calculated using the cost approach based on concluded contracts and the income approach as an income-generating property (based on the discounted cash flow method).

The value of the subject property was determined in terms of the best and most efficient use.

To determine the relative weight of each valuation method, the following factors should be taken into account:

• the purpose of the valuation and its intended use;
• the quantity and quality of data supporting the method.

Taking into account all these factors makes it possible to weigh and ultimately draw a final conclusion.

To determine the final value of the appraisal object, the advantages and disadvantages of each appraisal approach were analyzed and evaluated.

From a comparison of the considered approaches, it can be seen that there is no ideal approach to determining the market value. An indicator of the applicability of different methods and procedures to the appraisal of market value is the way in which the property moves on the open market. Any method based on market information is inherently comparative.

Therefore, after evaluating the object (business), it is necessary to coordinate the results. Reconciliation is a process in which certain logical judgments are made to reach a final cost estimate. Before starting it, it is necessary to consider all the facts and check the accuracy of the calculations. All assumptions are tested for reasonableness and reliability. At the same time, it is necessary to determine the situation - to choose which approach to the assessment will be fundamental, having the greatest weight in making the final decision on the value of the object being assessed, and which two other approaches will be required to guide the appraiser, to help in his logical reasoning.

This approach can and should act as the main one in some cases, but it has significant limitations in the application and interpretation of the results. It should be noted that, subject to the necessary application conditions, the results of calculations within the income approach serve as a guide for a potential investor (buyer).

The results under the cost approach are static. They do not characterize the investment attractiveness of the enterprise and the prospects for the operation of the object of assessment as an operating business.

Based on the fact that the objective definition of the market value of the property complex is the cost approach in valuation, the cost was determined using the cost approach.

We also used the income approach to determine the market value (discounted cash flow method), which takes into account the expected benefits. As a basis for calculating the cost by this method, we calculated the income from production activities on the basis of the property complex of LLP "Xxx".

We considered the sales comparison method unacceptable, since the analysis of market information did not reveal reliable data that could be verified.

As of the date of the assessment, no enterprises of a similar level, with similar characteristics of equipment, production process and applied technologies have been identified. There was also no information on sales of buildings similar in size and design features to the property being valued, on the basis of which a reasonable market value could be empirically determined.

And the fact that the method of comparative analysis of sales can be applied only when a developed market provides an influx of a significant amount of information on analogue objects does not allow us to evaluate the object using this approach in the assessment.

In order to finally agree on the results of the assessment, it is necessary to add weights to the assessment results obtained by each of the approaches. Weight coefficients show what share of the value obtained as a result of using each of the applied valuation methods is present in the final value of the market value of the object being valued (taking into account the objectives of the valuation).

The value obtained using the discounted cash flow method opens up the prospect of successful further financial and economic activity for us, and the company shows what profit the company will receive, how various external market factors will affect the value of the cash flow. This method was given the greatest weight as reflecting the potential of the company and the possibility of using it to generate income. At the same time, factors such as selling prices confirmed by contracts for products sold, and the presence of demand for electricity in the region were also taken into account.

The income approach is the best for assessing the value of commercial real estate, as well as enterprises as property complexes. The income appraisal is based on the assumption that the value of the property is equal to the current (today's, current) value of the rights to future income, it reflects the possibility of receiving income from the operation of the property being valued.

Increasing the value of your company is a completely natural desire of every entrepreneur who plans for the future. But this task is not easy, it requires the development of a certain strategy. After all, many factors affect the value of a company. In our article, we will try to fully disclose this topic and answer the question of how to increase the value of the company.

How it works

Preparing to sell is not the only motive for increasing. According to this indicator, shareholders can evaluate the effectiveness of the manager's work.

Various methods are used to increase the value of the firm:

• Efficient company management.
• Borrowing funds.
• Purchasing for manufactured products.
• Managing export operations.
• Elimination of legal disputes.
• Choice of sustainable areas of activity.
• Debt elimination.
• Selection of qualified employees.

These methods of enhancement can be combined or used one at a time, depending on the situation and opportunities. Let's consider each of them separately.

Ways

ISO 9000 quality management

It has been proven that the use of ISO 9000 quality management improves the level of enterprise management. And from this, the market value of the company can add up to 10 percent.

Now the market price of a company consists of two indicators: assets (share value) and systemic effect. If everything is clear with assets, because they have a coherent form and it is possible to display them in documents, then it is more difficult with a system effect. The fact is that such things as image, reputation, customer trust, geographic location cannot be assessed. But, nevertheless, they affect the price of the firm.

If the ISO 9000 system is used in the work of an enterprise, this will positively affect both the image and reputation. This certificate must be obtained, but this is not enough. The main thing is that the company works, adhering to this quality standard.

If the ISO 9000 system is used in the work of an enterprise, this will positively affect both the image and reputation.

Loans

At first glance, it seems that loans not only do not paint the company, but also lower its market value. In fact, this tool is successfully functioning in all the largest corporations in the world. If used wisely, it will serve well. In addition, the trust of banks means that the organization has the status of a reliable partner.

It is important to choose the optimal ratio of equity and borrowed funds. The customer will not be embarrassed by the company's debt if the profit allows it to be paid on time.

If the company does not have external debt obligations and it exists only on its own funds, this, on the contrary, is a reason to be wary. After all, full-fledged development and growth only at the expense of our own funds are impossible. If the loans are used successfully, then the increase in market value by 10-15 percent is likely.

Choice of sustainable areas of activity

Not only the success of the business, but also its value depends on the correctly chosen field of activity. Spheres that are distinguished by the greatest stability and a positive outlook for the future are valued. Picking areas that recede into yesterday can devalue even a successful company. After all, every year its price will only fall.

Skilled Workers

The backbone of any company is its employees. Putting together a good team is an extremely difficult task. If the company employs a highly qualified and well-coordinated team, this is one of the conditions for prosperity and increasing turnover.

Export operations

A company that works with foreign partners always looks solid and attractive in the eyes of a potential buyer. If an organization has entered foreign markets, it means that it has excellent potential, and it is rapidly developing in its direction.

Elimination of legal disputes

Any unresolved litigation damages the reputation of the company. A potential buyer pays special attention to them, because they can be inherited by him. As a result, the price of the company may fall slightly. Sometimes it is cheaper to pay competent lawyers and quickly settle all legal issues than to lose value in the sale. The same fully applies to the elimination of debts to partners.

When the decision to sell

When a decision is made to sell a company, a number of measures should be taken to sell the company more profitably. There are 2 stages: pre-sale preparation and presentation. The order of preparation is as follows:

• An expert assessment of assets is carried out, which reveals their exact value.
• If there are debts, they are paid off.
• If there are legal disputes, they are settled.
• A financial and accounting audit is carried out, which puts the documentation in order.
• for 2-3 years to demonstrate prospects to the new owner.

Finally

To increase the value of the company, the entrepreneur will have to try and think through strategies. But the ends here justify the means. Experienced appraisers say that the price depends not only on the performance of current activities (although this is also important). The potential of the company also plays an important role: whether the company can increase sales volumes over time, launch new production facilities, and expand. It is these factors that ultimately affect the final value of the company, reducing it or, on the contrary, increasing it.