Not a standard of value. The name of the workshop. Basic methodological principles and approaches to assessing the market value of enterprises

The appearance of PBU 14/2007, “Accounting for Intangible Assets,” is primarily associated with the introduction of part four of the Civil Code of the Russian Federation, which regulates the rights to the results of intellectual activity and to means of individualization. In this regard, accounting standards are brought into line with civil law. The book details the methodology of accounting in commercial organizations of intellectual property subject to PBU 14/2007 "Accounting for intangible assets." It contains the main accounting entries in accordance with the Chart of Accounts for the accounting of financial and economic activities of organizations and guidelines for the accounting of intangible assets. A large number of numerical examples are presented that clearly demonstrate the methodology of accounting for intangible assets in commercial organizations. Much attention is paid to the provisions of the Tax and ...

The purpose of this book is to acquaint the reader with practical techniques and methods for assessing the value of intangible assets. Currently, there is a certain lack of literature on these issues, and therefore there is a need for the preparation of this publication. In the present work, in the form of answers to questions, the fundamentals of the theory and practice of assessing the value of intangible assets are described. In particular, the legislative framework for assessing the value of intangible assets was considered, the main approaches and valuation methods were given, the basics of financial calculations necessary for the assessment of property were disclosed. This work is addressed to appraisers, financiers, heads of organizations, as well as all those interested in property valuation. The book can be used in the educational process of universities, in training specialists in the field of property valuation.

An important condition for sustainable long-term growth of any company is investment, and investors need reliable information. Without indicators reflecting the most important components of the company's value, managers cannot make decisions that would most contribute to its economic growth. Existing valuation methods for companies do not take intangible assets into account. And this is a stable customer base, brand and image of the company, its intellectual resources, competencies, knowledge and experience, common moral values \u200b\u200band norms, management processes. The authors of Weightless Wealth attempt to put an end to the eternal ignorance of intangible assets in accounting. In a new economy, neither capital nor physical resources determine the value of your company and provide it with a competitive advantage. What really gives the company value is its intangible assets - brands, networks, competence, knowledge, skills, corporate ...

This book is the first comprehensive, research-based study on the nature and impact of intangible assets. The book provides an assessment of the importance of intangible assets as a condition for the success of corporations, economic growth and social welfare in general. Combining case-based analysis and real-life examples with modern economic theory, Baruch Lev sheds new light on the nature of one of the fundamental and at the same time one of the least studied driving forces that influence business results and ensure economic growth. . The target audience of this publication is practicing business appraisers and top managers of companies.

A series of books "Financial Valuation. Fields of Application and Models" (FV) is a comprehensive complete text on valuing a business, set out in an accessible form. FV contains numerous examples and methods that will assist in the management of appraisal projects, as well as brief tips (NB!) That focus on important and often controversial issues in assessing business value. For the first time, John Wiley & Sons was able to attract 30 prominent and highly respected valuation professionals to discuss and agree on suitable valuation methods, to jointly present views and positions regarding valuation concepts, and most importantly, to apply appropriate valuation methods for business in practice. Authors from all over the United States are members of professional valuation and financial associations, including AICPA, ASA, SFA, IBA, and NACVA. The book series "Financial Valuation. Applications and Models" is aimed at groups ...

The structure and objects of intellectual property under the provisions of the Paris Convention and the legislation of Russia, the funds of intangible assets of the enterprise and the methodology for their assessment are considered. The organization of the use and planning of the effectiveness of intangible assets is disclosed. For university students and students of continuing education courses, managers and specialists of enterprises.

The system-activity concept of intellectual activity is described in a systematic way. The subject-object essence of innovations is revealed; directions of commercialization of intellectual property are shown; The legal framework governing the ownership of intellectual property is provided. The classification of intellectual property objects, their features (immateriality, usefulness, uniqueness, urgency, depreciation, etc.), the possibility of their full participation in market relations are considered. The methodological tools that ensure the involvement of products of intellectual labor in economic turnover include the types of value used on the market (market and non-market), approaches, principles of value and technology (process) of valuation. The textbook is prepared in accordance with the curriculum for the discipline of DS. 1.3 "Valuation of intangible assets and intellectual property." Designed for students studying ...

The manual, in accordance with current regulations, sets out the primary documentation and accounting for intangible assets, fixed assets, capital, material, financial investments (investments) and other non-current assets located in section 1 of the asset of the balance sheet, as well as the methodology audits. Each chapter discusses examples and provides a workshop, the solution of which allows to consolidate the theoretical material. For students of higher and secondary educational institutions studying accounting and auditing, as well as for preparing for the exam for the qualification certificate of a professional accountant, auditor and financial manager.

Methodology for identifying and evaluating "hidden" and "imaginary" assets and liabilities. It is used to assess the market value of an organization (business) The book is an updated and revised edition of two studies previously published by the author: the Methodology for identifying and evaluating "hidden" assets and the Methodology for identifying and evaluating "imaginary" assets. The issues of improving methods and techniques for market valuation of a functioning business using accounting, tax and management accounting data, as well as issues of improving methods and techniques for identifying and evaluating assets and liabilities that are either reflected in accounting, but actually absent or absent, are considered but are actually available. The methodology will be interesting to practicing appraisers, as well as teachers, graduate students and students of economic specialties: accounting, entrepreneurial activity, finance and credit, business valuation.

We offer you a translation of the second edition of "Handbook of Business Valuation" ("Handbook of Business Valuation"). To date, his English-language publication enjoys absolute authority among professionals in the appraisal business. The authors of the book are recognized authorities in evaluating the business. The publication presents the practical experience of US specialists in assessing small businesses in various areas. The target audience of this publication is practicing business appraisers and top company managers. An interesting book will be students of economic specialties and readers interested in modern publications on business valuation. The goal pursued by the publishers of this book is to expand the reader's understanding of the practical methods of evaluating a business.

The generally accepted standards of value in the valuation of the enterprise are a set of requirements for valuation. There are four main standards for enterprise valuation:

1) reasonable market value;

2) reasonable cost;

3) investment value;

4) internal (fundamental) value.

All these standards suggest that the assessment is made based on the so-called free, not forced (including administrative interventions) transactions for the acquisition of the enterprise or its shares.

The main differences between these standards are as follows.

Standard reasonable market valueit assumes that the valuation of the enterprise (investment project) is based on information (about property, current and forecast market conditions and purchased resources, business opportunities, etc.), which is equally accessible to any potential buyer and seller of the enterprise, to any investor . The business opportunities of any potential investor, in particular, for financing a project, for sales, are also considered equal and unlimited.

Standard fair valueinvolves the assessment of the enterprise on the basis of the information equally accessible to the specific buyer and seller of the enterprise. Their business opportunities are also assumed to be the same.

Standard investment valueinvolves assessing the enterprise (investment project) only on the basis of the knowledge and business opportunities of a particular investor (therefore, according to this standard, the assessment of the same project will be different for different potential investors).

Standard intrinsic (fundamental) valueinvolves the assessment of the enterprise (project) by a third-party independent appraiser on the basis of its own awareness and understanding of the investor’s business opportunities (which does not exclude providing the appraiser, at his request, with the information necessary for the assessment, which he will correct).

The classification of enterprise value standards, taking into account the completeness and reliability of the information required for evaluating and its availability for a different range of market participants, can be reflected in the figure. 1.2 coordinate system (the sufficiency of information here is understood as sufficiency for the application of a particular method of assessing the enterprise).

In addition to generally accepted international standards, individual countries develop and approve national standards for evaluating enterprises, which play the role of normative methodological documents. They are also framework, do not dictate an assessment method for each specific case. However, these national standards claim to streamline the calculation methods for different enterprise valuation methods and the terminology used.

In the process of evaluating a business, one of the most important issues is to establish a standard or type of assessed value.

Standards or types of value are terms or concepts of value that an appraiser must adhere to in the course of business.

In Russian law, the concept of “cost standard” replaces the term “type of value”. Types of value required for Russian appraisers are enshrined in the Law “On Valuation Activities” and in Decree of the Government of the Russian Federation No. 519 “On Approval of Valuation Standards” dated 06.07.01.

According to these regulations, the entire set of types of costs is divided into:

· The market value of the valuation subject (equivalent to the standard of reasonable market value in American valuation activity);

· Types of values \u200b\u200bother than market value.

1. Market value – main standard or type of value.

Art. 3 of the Law "On Valuation Activities in the Russian Federation" states:

“... the market value of the appraised property means the most probable price at which this appraised property can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any emergency circumstances are not reflected in the value of the transaction price i.e. when

· One of the parties to the transaction is not obliged to alienate the object of assessment, and the other is not obliged to accept execution,

· The parties to the transaction are well aware of the subject matter of the transaction and act in their interests,

· The valuation subject is presented to the open market in the form of a public offer (written or oral or arising from the conduct of the offering party - the offeror - a message about the desire, offer, to enter into a legally binding contract, and from the terms of this message it is clear or implied that it will bind the offeror as soon as the party - the acceptor to whom the offer is addressed will accept it by action, abstention from action or counter obligation),

· The transaction price is a reasonable remuneration for the object of evaluation and enforcement of the transaction in relation to the parties to the transaction with no one else,

· The payment for the valuation item is expressed in cash. ”

At its core, it is a compromise price, and in literature it is often called equilibrium price. The concept of reasonable market value is oriented towards the future, that is, by assessing the insistence on the value of future income, including the residual value of this object.

2. Investment value – this is the business value for a specific buyer. It is formed on the basis of the goals, objectives, prospects that this particular buyer (investor) pursues.

Reasons for differences in reasonable and investment value:

· Differences in the assessment of the amount of profit (future profitability);

· Differences in the assessment of the risk associated with doing business (a potential investor may have greater resources and solvency than the current owner, and accordingly a number of risks for the new investor will not exist);

· Differences in tax status (a particular investor may have certain tax benefits that will affect the new facility);

· Synergistic effect, that is, the effect of merging with other assets controlled by a specific investor - as a result, the total cost of two packages will be more than the mathematical sum of their costs.

Investment value is not a hypothetical value. It proceeds from the plan of the investor, taking into account the principle of the most effective use.

3. Internal fundamental value – rare in practice; It is used if there is an assumption that the shares of an open company are undervalued by the market due to some objective circumstances. The basis of the definition is to identify the internal potential of the business.

In accordance with this standard, the value of a business is determined on the basis of the following assumption: if something can be done to increase the value of a business based on its internal potential, then this will be done. The intrinsic value does not depend on how these characteristics correspond to the goals of a particular investor, but on how they are interpreted by one or another analyst.

4. Salvage value is the amount of money that can actually be obtained from the sale of property in a period insufficient to conduct adequate marketing. It is applied in case the business is supposed to be terminated (enterprise closure).

It is determined as the difference between the revenue expected from the sale of the company's assets on the market and the costs of liquidating the enterprise (commission, costs of carrying out the activities of the enterprise before its liquidation, expenses for legal, accounting services, etc.)

As a rule, the residual value is significantly less than the value of the existing enterprise.

Other types of value - insurance, taxable, utilization, balance sheet, collateral, rental, effective, capitalized, etc.

15. METHODS (APPROACHES) FOR ESTIMATING THE COST OF A COMPANY (BUSINESS)

15.1 Business Valuation: subject, goals, practical situations, standards

Subject of evaluation

Business valuation is a function (activity), which in different situations often has to be carried out in a market economy. It is necessary to deal with it both in assessing the bankrupt enterprise to be sold, and in determining how much a normally working open joint-stock company has the right to issue new shares (for an amount exceeding the carrying amount of the enterprise’s own capital), and when calculating the price at which any (open or closed) joint stock company must repurchase shares. At shareholders leaving it (including founders). This may apply / also to companies and limited partnerships, if so provided for by their charter.

In this broadest sense, the subject of business valuation is understood in two ways.

Firsthis understanding boils down to the traditional now in our country (but not historically - see box below) understanding of business valuation as valuation of a company as a legal entity. For this understanding, also, according to the tradition of economics, where only legal entities with certain property on the balance sheet were engaged in business, the identification of the business valuation of firms with the valuation of the property of these firms is characteristic.

Second -more widespread in the world - understanding of business valuation is to find out how much it costs not firms earning certain incomes, but property rights, technologies, competitive advantages and assets, tangible and intangible (the latter do not necessarily reflect the corresponding technologies and advantages) that make it possible to earn these incomes. Moreover, these rights, technologies and assets may not belong to legal entities, but to individuals. This does not deprive them of their attractiveness as objects of sale in the market. Consequently, the problem of their assessment remains relevant.

Thus, there are two subjects of business valuation:

- company valuation,which is may be based (but not necessarily) on the valuation of their property;

- assessment of "business lines" (the old Russian term for them is a business;in German -Geschaeft ) as a combination of property rights, technologies and assets that provide expected future income with some probability.

Business Line Evaluation

More extensively than this has already been done, a business line in the broad sense can be defined as a combination of property rights, sufficiently long-term privileges and competitive advantages, special (in its possible application) and universal property, technologies, as well as contracts (for the purchase of purchased resources) , renting property, hiring workers and marketing products) that provide the opportunity to receive certain income (income stream or a series of cash flows - cash- stream or stream of cash- flows).

In this broad sense, the business line is also called grocery line.In investment analysis, a business line is also called investment projectwhich may be at different stages of its life cycle (at the beginning of the process of investing in the components of a business line, in the middle of it, at the end of the investment process and during the period of receiving returns from previously made investments).

In a narrow sense, a business line is also simply referred to as a set of contracts (especially long-term ones), including licenses for the type of activity and technologies that are key (making up the so-called purchase and sales lines of a business) for the revenue stream caused by them.

Accordingly, business lines can serve as valuation items as:

Product lines or investment projects (business lines in the broad sense of the word);

The set of contracts providing the purchase and sales lines of a business (business lines in the narrow sense of the word).

Business Line Valuation Objectives

The assessment of business lines in business practice can have five main goals:

1) evaluate all the business lines of the firm in order to summarize the true market value of the firm as an operating entity by the sum of their value (plus the market value of the above non-functioning assets);

2) determine the estimated reasonable maximum (able to serve in the starting bidding for the seller the starting) price at which the holder of the business line of contracts can sell their contractual position (rights under the contract) to third parties in the form contract assignment(if it is not prohibited in the contract itself, then, according to the Civil Code of any country with a market economy, including the Russian Federation, this is possible without the consent of the counterparty to the contract);

3) evaluate the whole single-product enterprise (firm), the price of which coincides (excluding non-functioning assets) with the assessment of its only business line;

4) evaluate the market value of the investment project, which coincides with the business line in question (which, in turn, can be used to select investment projects for financing);

5) establish the estimated reasonable market value of the authorized (equity) capital of the enterprise established for the implementation of the planned investment project and having decisive competitive advantages for this, but not yet embarking on the implementation of the estimated project.

Assessment of firms (enterprises)

A company (enterprise) as a subject of special evaluation makes sense when the market is not able to objectively evaluate it (it). This occurs in the following situations:

The company being evaluated is closed, that is, by definition it is not valued on the stock market (we are talking about closed joint-stock companies, limited liability companies and partnerships);

The company being evaluated is formally open, but is not listed on stock exchanges because it does not meet their requirements (in terms of size, openness of financial statements, etc.); at the same time, it is not constantly quoted on the OTC market;

The company being valued is an open joint stock company, listed on a reputable stock exchange, but its shares are not liquid enough (transactions are few and rare) - so the seemingly observable market value of these shares cannot be trusted;

The entire stock market in the country is not liquid enough or depends very much on short-term non-economic factors, the result of which is identical to the previous case.

Valuation objectives of the company (enterprise)

Most often in world practice, firms (enterprises) are evaluated for the following purposes:

1) check how objective (independent of random and temporarily acting factors) the current market quotation of the shares of a public company with sufficiently liquid shares, as well as the current trend observed in the market to change this quotation: this allows small and portfolio investors to determine the expected the continuation or change of this trend, for strategic investors - to make a more informed decision on the acquisition or sale of controlling stakes in such a company, not relying solely on stock market data;

2) to monitor the market value of closed companies and enterprises with insufficiently liquid shares, for which another way to obtain any reliable information about their market value is in principle unavailable;

3) to prepare proposals for the purchase price of closed companies or enterprises with insufficiently liquid shares;

4) use the audit of companies of all types to provide their owners (for open companies - all market participants) with complete information about the true financial situation and prospects of the enterprise.

We note, however, that the main application of business (firm) valuation is nevertheless a simple practical situation when, in the interests of preparing an ordinary transaction for the sale of one or another package of shares (stakes) of any enterprise, it becomes necessary to "estimate" what is the price for it (based on the assessment of the enterprise as a whole - one hundred percent of its shares) can be considered reasonable or as acceptable as possible.

In modern conditions, there are other, not reflected above, practical applications of business valuation. Among the most important of them are the following.

1) If propertycollateral is a package stocksfor example, to a subsidiary borrower of an enterprise, and it is closed (shares are not traded on the stock market and it is impossible to rely on their market price), in order to correlate the size of the loan with the cost of such property support, you will have to resort to the services of an independent licensed business appraiser and get from him an estimate of the value of the mentioned block of shares. In turn, for this it will be necessary to first evaluate the entire subsidiary. Moreover, this can be done by different methods, because the borrower has access to the internal information of his subsidiary and is able to provide this access to the appraiser.

The same applies to shares in any other enterprises, if the borrower has a sufficiently large package and is represented in their management.

Table 15.1 - Items, goals and special applications of business valuation

Business Valuation Items	Business Valuation Objectives	Special Business Valuation Applications
Business Line Evaluation	Valuation of a company by the sum of the costs of its business lines (plus non-functioning assets) Estimation of the value of assignment for contracts constituting a business line	Determining the price of repurchase by a company of stocks (shares) from shareholders (shareholders) leaving it. Justification of the eligibility of issuing new shares
	Assessment of the market value of a single-product enterprise Determining the market value of an investment project Assessment of the market value of the authorized capital of a newly established enterprise for the implementation of an investment project	Determining the sale price of bankrupt enterprises Estimation of reasonable selling price for privatized enterprises (or state-owned blocks of shares) Prediction of the selling price of rehabilitated enterprises
Company Valuation	Assessment of the reliability of trends in changing market quotes of open companies
	Monitoring the appraised value of closed companies
	Development of the selling price of closed companies (as well as companies with insufficiently liquid shares)
	Use to present a complete and true picture of the financial condition of audited firms

2) In the process restructuring of large companiesand in particular their reorganizationoften there are situations when you need to make an exchange sharessome enterprises for shares of others - for example, when exchanging shares of minority shareholders of subsidiaries for shares of a holding or central company, when switching to a single share, consolidating a business, etc. As a rule, in these cases we are talking about non-negotiable shares on the stock market, for which there is no observable price. Therefore, in order to justify the used exchange ratios (and thereby avoid subsequently possible legal claims by minority shareholders), it is necessary to first evaluate the enterprises whose shares are exchanged.

The same problem arises and is also solved when preparing company mergers with the exchange of shares between co-owners of these companies or between the companies themselves.

3) Business valuation is resorted to when assessing the property contribution to the authorized capital of newly created firms if property is contributed in the form of blocks of shares, which are then subject to valuation.

4) Finally, enterprise valuation can be useful in relation to open companieswhose shares are traded on the stock market and are even highly liquid (such as "blue chips"). The valuation customer may seek to obtain an estimate of the so-called objective value of the enterprise and its shares - in order to see how much they are undervalued or overestimated at the moment in the market (after all, only the price in the market, where the balance between supply and demand is reached, can reflect the true value ; in addition, the current market price of shares can be trusted only if the relevant company is sufficiently informationally transparent - otherwise any unreasonable rumor about it or its owners can dramatically distort the price). This will help to correctly predict future changes in the market price of stocks, make decisions about when it is more profitable to sell or buy these stocks. The market price of shares may also be temporarily overstated or underestimated, depending on the state of the entire stock market.

Costing and valuation approaches

The assessment of the enterprise initially depends on what kind of "scenario" of its development, that is, on which version of the decision regarding its future fate, such an assessment is made.

Therefore, a competent approach to business unequivocally requires that any assessment be made based on the initially indicated cost determination enterprises, which in principle can be two (taking into account intermediate solutions):

1) Assessment of the enterprise as operating ( on - going - concern ).

2) Assessment of the liquidation value of the enterprise (based on its liquidation, implying the termination of the business) .

If an enterprise is assessed as operating (retaining jobs), then it is natural to evaluate it within the framework of the so-called income approach. This approach assumes that the market value of the business is determined by the future income that can be obtained by continuing the business.

At the same time, the value of the property that is available at the enterprise, but is necessary for the continuation of the business and the life of the enterprise as operating, should not affect (should not take into account) the market value of the enterprise. Indeed, in the event of the sale of such property (a similar prospect would enable its market value to be included in the assessment of the value of the enterprise), the continuation of a business that is based on this property would be impossible and would exclude the initial assumption that the enterprise would be evaluated as operating.

Assessment of the enterprise as operating is also being implemented within the framework of the so-called market approach. It comes down to the fact that in order to assess the market value of a closed company that does not have shares on the stock market and among open companies with sufficiently liquid shares, they find an analog company (of the same industry, of the same size, using the same accounting system in terms of methods accounting of inventory and depreciation methods, of the same age, etc.), which is evaluated by the stock market itself, and, with appropriate adjustments, transfer this assessment to the enterprise in question.

The liquidation value of an enterprise is estimated primarily in the framework of a so-called property (costly) approach. Its content is to assess the market value of debt-free property of the enterprise. At the same time, they are repelled from assessing the market value of all assets (property) of the enterprise - tangible (real and financial) and intangible, regardless of how they are reflected (and whether they are reflected at all with regard to) intangible assets in the balance sheet of the enterprise.

This is a natural approach for evaluating an enterprise, which will be closed with the sale of its property at market value and with the repayment of the company's debts regardless of their expiration dates. Moreover, the most rigorously indicated approach is taken when the market value of the enterprise is determined not only as the sum of the market values \u200b\u200bof all types of its property, but of the market values \u200b\u200bof the property of the enterprise, which are determined on the basis of its urgent sale (liquidation values \u200b\u200bof the property). The latter are lower than just the "reasonable" market value of the property, estimated on the basis of a leisurely sale with a thorough search for the most profitable buyer (this applies even to real estate, for which urgent sale prices in the country do not rise but fall).

Thus, there are the following approaches to the valuation of the enterprise, in varying degrees, corresponding to one or another definition of business value:

Income approach;

Market approach;

Property (costly) approach.

Cost Standards

Generally accepted standards of value in business valuation are a combination of valuation requirements.

There are four main business valuation standards:

Reasonable market value;

Reasonable cost;

Investment value;

Intrinsic (fundamental) value.

All these standards suggest that the assessment is made 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 presented with a claim for the reimbursement of investments in the investment projects of the enterprise, which had been launched earlier in the interests of obtaining subsequent significant positive flows. In a free transaction, the buyer of the enterprise (package of its shares) is ready to pay for it (the corresponding package of shares) at the maximum exactly as much as he can get from the profits (cash flows) of the acquired company for the entire period of operation of the acquired business.

The main differences between these standards are as follows.

1) The standard of reasonable market value assumes that the valuation of a business (investment project) is based on information (about property, current and forecast market conditions and sales resources, etc.), which is equally accessible to any potential buyer and seller of the business, for any investor. The business opportunities of any potential investor (in particular, project financing, sales) are also considered equal and unlimited.

2) The standard of reasonable cost involves the assessment of a business on the basis of the information that is equally accessible to a particular buyer and seller of the business. Their business opportunities are also assumed to be the same.

3) The standard of investment value involves the assessment of a business (investment project) only on the basis of the knowledge and business opportunities of a particular investor (therefore, according to this standard, the assessment of the same project will be different for different potential investors).

4) The standard of intrinsic (fundamental) value involves the assessment of a business (project) by a third-party independent appraiser based on its own information and ideas about the investor’s business opportunities (which does not exclude the provision to the appraiser, upon request, of the information necessary for valuation that he will correct).

Reasonable market value standard, although it may seem too theorized, it is already used in the world (mainly in Anglo-Saxon countries) to determine the tax base for property tax regarding financial assets of enterprises that have shares of closed subsidiaries on their balance sheets. At the same time, the relevant laws require that the specified taxable base is the justified market value of the subsidiaries, which are determined by special methods of business valuation, proportionally reduced in accordance with the share of the parent company in the subsidiary.

This requirement stipulates that Western taxpayer corporations are forced to - in order to protect themselves from claims of the tax inspectorate - involve prestigious appraisal firms, which most often are large audit firms, in assessing the reasonable market value of their subsidiary closed companies and controlling stakes in them. .

Fair value standard it is most applicable in Western practice when minority shareholders protest through a court 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 preparation of the contractual sale price of this standard. The claim is that the majority shareholders in such cases often do not provide the counterparty to the transaction (minority shareholder) with that 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. Proven similar information asymmetry may 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 asymmetries (often reinforcing it by spreading false information about the company's low prospects) bought small blocks of shares from employees of privatized enterprises, which the payment of wages was delayed.

Standard, investment value it assumes that business valuation is carried out on the basis of awareness of 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 particular investor also play a role - assets available to him outside the framework of a company’s purchase and sale transaction (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 acquiring or creating their own forces. Important and creative opportunities (business fantasy) of the investor, etc.

Just as an electric current will flow between the poles when a potential difference arises between them, so a purchase and sale transaction of an enterprise (a package of its shares) will occur under conditions when the investment value of the same enterprise from the seller’s point of view below, than its investment value from the point of view of the buyer.

The investment value of the enterprise from the point of view of an external investor-buyer is called external value enterprises.

The investment value of the enterprise from the point of view of its current managers is called the value of the enterprise "as it is".

Standard of intrinsic (fundamental) value the company requires that the assessment of the business is carried out not only on the basis of information from an independent analyst, who must take into account all factors influencing the assessment, but also taking into account the fact that the analyst is not forced to request information from one of the parties interested in the assessment (seller) or the buyer of the enterprise), thereby exposing itself to dependence on it.

A practical conclusion from the above is that an independent analyst (appraiser), in order to fulfill the standard of internal (fundamental) value, must have his own experience in the industry of the enterprise in question and his own independent information about it.

The standard of intrinsic (fundamental) value also implies that the enterprise in question should be evaluated by all existing methods of evaluating a business - with obtaining a final estimate as the weighted average of all valuations determined by different methods (where specially validated factors of confidence of the evaluator to the results of applying or other assessment method in a specific assessment situation).

The generally accepted value standards in business valuation are a set of valuation requirements. In world practice, there are four main standards of business valuation:

■ reasonable market value;

■ reasonable cost;

■ investment value;

■ intrinsic (fundamental) value.

The main differences between these standards are as follows.

Fair Market Value Standard It assumes that the evaluation of a business or investment project is based on information (about property, current and forecast market conditions and purchased resources), which is equally accessible to any potential buyer and seller of the business, to any investor whose business opportunities in financing projects are also considered equal and unlimited. The standard of reasonable market value is considered to be too theorized, but nevertheless it is used in world practice (mainly in Anglo-Saxon countries) to determine the tax base for property tax in terms of financial assets of enterprises that have shares of closed subsidiaries on their balance sheets.

Fair value standard involves evaluating the business on the basis of equally accessible information for specific buyers and sellers of the business. The information provided should be neutral, the business opportunities of business participants should be the same. The fair value standard is most applicable in Western practice when minority shareholders protest through a court the purchase of shares from larger shareholders of the same enterprises on the basis of false information about the true market prospects of the enterprise and the true market value of its property. This situation is also typical for Russia, when larger shareholders and managers of privatized enterprises, on the basis of information asymmetry, are buying up small blocks of shares from employees of privatized enterprises.

Investment Value Standard it involves evaluating a business or investment project only on the basis of awareness of the property, market prospects of the enterprise in the sales markets, purchased resources, business opportunities (availability of resources for business development, business imagination and creative opportunities) of a particular investor. Moreover, the assessment of the same project will be different for different potential investors. In accordance with this standard, the investment value of an enterprise, from the point of view of an external investor-buyer, is the external value, and from the position of existing managers - the book value.

Standard of intrinsic (fundamental) value it requires that a business or investment project be evaluated by a third-party independent appraiser based on his own knowledge and understanding of the investor’s business opportunities. This means that an independent analyst or evaluator, in order to comply with the standard of internal (fundamental) value, must have his own experience in the industry of the enterprise in question and his own independent information about it. The standard of intrinsic (fundamental) value also assumes that the analyzed enterprise should be evaluated by all existing methods of business valuation in order to obtain a final assessment.

In world practice, it is believed that the most objective assessment of a business complies with the standard of reasonable market value, since it does not depend on the opinion of the investor who will implement the project.

To the greatest extent, the influence of standards is taken into account when determining the discount rate for forecasting cash flows, as well as profit and loss for the project. This is due to the fact that for different subjects of assessment, commercial and financial information on the level and variability of investment income in the industry in question is not always available. If the assessment uses publicly available information, then it complies with the standard of reasonable market value, if it is confidential, then the assessment is carried out in accordance with the standard of investment value.

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