DOES EQUITIZATION NEED AN ENTERPRISE VALUATION?

07/06/2023

Valuation News

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According to the current law, in addition to enterprises owned by individuals or organizations, state-owned enterprises still exist in parallel. These enterprises operate under management and operate on 100% state capital. However, stemming from the business situation, many state-owned enterprises had to be equitized.

What is equitization?

In todays market, it is not too difficult for us to see businesses and emulation companies springing up, many companies establishing a series of small businesses and are known by the familiar names of parent companies and companies. subsidiary. That is, an individual or organization, or many individuals who jointly own many companies.

Accordingly, equitization is a phrase used to refer to companies from one business owner to many companies in the form of transferring part or all of the assets to the enterprise to many people in the form of selling shares. for other individuals and organizations.

After repurchasing shares, these subjects will automatically become new shareholders of the company, having the right to make decisions like ordinary shareholders by law.

1. Subjects of application in enterprise valuation:

• As companies, businesses

• Has been and is preparing for equitization

• Expected significant changes in the companys ownership or capital structure: merger, joint venture, association, capital transfer, company acquisition, or franchise...

• Preparing to issue bonds for the first time to the public

• On the way to develop and expand the scale of operation, or there is a change in the organization of production and business activities.

2. Enterprise valuation usually serves the following main purposes:

• Buy, sell, merge, associate, and liquidate businesses

• Investing, contributing capital, buying and selling securities of enterprises

• Equitization, a listing of securities on the stock market

• Borrowing capital for business investment

• Tax

• Dispute settlement and handling

3. Dossiers and documents related to enterprise valuation include:

• Certificate of business registration

• The tax registration certificate

• Decision on the establishment of affiliated units (if any)

• Minutes of capital contribution, association, and capital contribution to establish the Company

• Financial data

• Accounting balance sheet

• Detailed statements of accounts

• Documents related to business activities

• Personnel-related documents

To know the exact value of the business, you should look to the valuation units with a lot of experience and expertise to assess the market and price accurately, so they will make accurate and quick judgments best.

Business valuation is one of SunValues strengths, with an abundant price data warehouse, and human resources with a high level of professional experience, will provide customers with information about the value of the business with high accuracy. High reliability for each assessment purpose.

The SunValue brand with the desire to reach the world affirms its pioneering position in applying technology in valuation, helping to monitor real estate price fluctuations, completing price data, and supporting the development of the Vietnamese real estate market. South and International. The system with 4 branches and more than 50 transaction offices nationwide, 2 representative offices in the US, Australia,…

SunValue – National brand that has actively contributed to the development of the appraisal industry in Vietnam.