Application Research On The Business Valuation Methods Of IT Enterprise

On the background of the rapid-development, intra-industry-transfer, structure- adjustment and strategy-migration of global IT Industry, economic activities such as investment, ESOP, IPO, merge, acquisition, bankruptcy, reorganization, liquidation happen more and more frequently in IT industry. Business value and valuation are the basis of decision making of such activities. How to apply methods is the key issue of business valuation, and is directly relate to the results of valuation and transaction. Otherwise, due to the various factors such as technological barrier, business mode, operation mode, technological innovation, appraiser and investor usually make conceptive and recognitive mistakes. In practice, there are a lot of problems in application of business valuation methods. So application research on the business valuation methods of IT Enterprise has important significance.Firstly, the paper describes the topic background and research significance, the train of thought and technological line. Secondly, the paper describes basic concepts of business valuation theory and definitions of IT and IT enterprise, and analyses the classifications of IT enterprise, differences of IT enterprise and high tech enterprise, and valuation characters of IT enterprise. Thirdly, the paper theoretically analyses the business valuation methods, analyses the thoughts, foundations, essentials, key issues, application conditions and procedures of income, asset-based and market approaches, and analyses the specific valuation methods in various approaches. Then, the paper analyses the specific application of business valuation methods in classified IT enterprises, which include hardware-production company, software-development company, distribution and sale company, IT facility service provider, technical and engineering service provider, Internet application service provider and high-tech IT company. At last, the paper analyses a specific case which is from work practice, summarizes the research and draws the conclusions.