| With the value management gradually implemented in enterprises, the idea of maximizing corporate value has been well recognized by people. The reasonable assessment of the enterprise value is not only the core issue of enterprises going public and acquisition, but also the premise of how the investors in enterprises evaluate operator performance and make reasonable incentives.At present, Business Valuation theory and methods have been studied more thoroughly, but only the value assessment of non-listed SMEs are also less involved. Now SMEs in China are in a period of rapid development, the financing merger and acquisition market is very active and has urgent need for their correct value judgments and reasonable valuations According to the existing theoretical research results and combined with my many years'practical experience working in small and medium enterprises, this article will explore the methods and models which are more appropriate for SME valuation.This essay introduced research background of the topic and reviewed related theories about business valuations, and it analyzed the Specificity of business valuations in SMEs and explored the applicability of each evaluation method to SMEs by describing prevailing approach at present to assess business value. On this basis, it made a comprehensive analysis on the basic situation, history and industry position of the JZ company, excavated factors on-and off-balance sheet of corporate financial statements and explicit and implicit factors that affect business value, and selected the appropriate valuation model of the company's own. In the application of valuation models, using a more clear format of the financial budget, this article clearly demonstrated the predicative process of the target company's future cash flow, then combined with the current capital market data, it derived capital costs through a professional financial method conversion, and ultimately it came to reasonable business valuation and also verified the results with the method of comparison. To promote the maximization of corporate value, as for the problems found during the assessment process, the author put forward suggestions and views to improve the enterprise business model, organizational structure and credit policies. |
