The Study Of Business Value Maximization And The Way To Increase It

With the advance of economy, business combination and reorganization can be seen frequently. Of course, common phenomenon ——efficient enterprises prosper and the inefficient ones are eliminated ——exists between the companies, the operational goal of which have changed from pursuing profit maximization to business value maximization during the competition. Business managements, following the same step, change from traditional to value based model. Whatever the scales and economic elements, a company is exploring appropriate way to develop as well as key factors to succeed, which easily strengthen the core company to increase its business value.Firstly, this essay starts with the value background to analyze business theory and MM theory basis. It also put forward a theory and value management on researching business value, and much more importance has been attached to cash flow.Secondly, the essay, on the basis of value management, gives definition to maximization of business value which is taken as the most suitable operational object. From the perspective of macro PEST analysis industrial structure analysis and micro business life cycle, cash flow, cost of capital, it differentiates related aspects exerting influences on business value. According to China's national conditions, it raises varieties of methods including the discounted cash flow, the EVA and the replacement value.Lastly, optimizing the business and financial value chain and bringing them into harmonious is an approach to increase business value. Take Group Haier's management activities, for example, the essay illustrates that operational and financial activities affects business value.