Modern Methods of Business Valuation—Case Study and New Concepts

Abstract

In the modern world, the terms enterprise value and valuation are of great importance. Knowledge about how much an enterprise is worth is of fundamental importance for both the owner of that company and investors when negotiating the price of an enterprise at the time of conducting a commercial transaction. The article presents the goals of the company’s valuation and characteristic stages of the company’s life at which such valuation is necessary. The article classifies the methods of enterprise valuation used today. On this basis, the valuation methodology is presented according to the MDI-R concept (Assets, Income, Intellectual Capital-Market), which in a broad spectrum measures the effectiveness of the company’s operations and, in accordance with the current features of good valuation, aims to determine the fair value of the company. The purpose of the article is to demonstrate the need to improve the code of conduct and valuation standards. As part of the implementation of the objective, multi-faceted and complex valuation issues are presented, as well as factors that may distort the determination of fair value. The methodology of the study is based on inferences about the methodology of business valuation, and verification is based on practical examples, by which a hypothesis on the existence of critical elements of valuation is verified that allows the use of broad subjectivity in estimating the value of assets. At the same time, the factors that determine the possibility of the existence of too wide a subjectivity in estimating assets, which is in contradiction with the features of good valuation, are presented. The attempt is made to draw attention to the threats arising from modern business valuation methodologies and their challenges in the future. Additionally, this article offers the authors’ proposed hybrid method MDI-R, which draws from existing solutions to improve their functionality and applicability.

The impact of taxation on the value of companies

“…The size of the company proved to be in a negative relationship with both the level of total debt and the level of long-term debt, but in a positive relationship with short-term debts. This aspect can be explained by the fact that Iraqi companies have a higher probability of bankruptcy, which demotivates them when the issue of indebtedness arises (Miciuła et al, 2020);…”

Skema Ponzi: Indikasi Kecurangan Pada Valuasi Startup Menggunakan Gross Merchandise Value

“…Proses valuasi bisnis ini merupakan suatu proses yang kompleks dan membutuhkan tidak hanya satu disiplin ilmu saja namun banyak disiplin serta praktik yang berkembang saat ini (Miciuła et al, 2020). Selain itu, dalam proses penilaian atau valuasi bisnis tidak terdapat aturan yang baku.…”

“…Model dari valuasi perusahaan seharusnya tidak hanya menggambarkan nilai keseluruhan dari perusahaan tersebut, namun harus dapat menunjukkan bagaimana nilai tersebut diperoleh (Miciuła et al, 2020) . Oleh karena itu, dalam proses penilaian atau valuasi bisnis, harus dapat mencangkup seluruh faktor yang dapat mempengaruhi nilai perusahaan tersebut (Miciuła et al, 2020) Sumber: data diolah HASIL DAN PEMBAHASAN Perkembangan startup di Indonesia Indonesia merupakan salah satu negara dengan pertumbuhan startup yang meningkat dari tahun ke tahun. Berdasarkan data yang diperoleh dari Startup Ranking, sejak 2017 hingga awal tahun 2022 saja jumlah startup di Indonesia sudah tumbuh dari semula sebanyak 1.400 perusahaan menjadi 2.327 (Aeni, 2021).…”

“…Valuasi perusahaan merupakan suatu hal yang rumit dilakukan dikarenakan terdapat subjektivitas dalam konsep "value" atau nilai itu sendiri. Terdapat beberapa variabel yang dapat menentukan atau mempengaruhi valuasi suatu perusahaan seperti kondisi perekonomian suatu negara, strategi pengembangan bisnis perusahaan, sifat dan penggunaan aset perusahaan, sumber daya manusia, serta kondisi pasar pada bisnis yang dijalani perusahaan (Miciuła et al, 2020). Menurut Feldman (2005) proses penilaian atau valuasi pada perusahaan startup, yang merupakan perusahaan privat, tidak berbeda dengan valuasi terhadap perusahaan terbuka.…”

Reflecting on the Entrepreneurship Paradox in Sub-Saharan Africa

“…A new organisation is less than three and a half years old . The organisation's value is the measurable and transferable present worth (Fisher & Lentz, 1990) which is the organisation's assets less its current liabilities (Miciula et al, 2020). The aggregate value of innovations carried out represents entrepreneurship value, the contribution towards economic productivity from entrepreneurship undertaken in the economy.…”