SWOT Value Appraisal Approach Of Venture Firms

Venture Firm is a kind of enterprise which emerges with the new technology. Most of those firms develop high-tech products or provide new services which also base on high-tech.They usually run with high risk as well as high revenue.Since 1980s,these venture firms have developed very fast.Investors,managers of the company and supervisors are heightening their request of exact information about those firms.However,because of the special characters of venture firms,when we use traditional approaches to value those firms,the results usually turn out to frustrate us. Those traditional price approaches seem to be not so suitable for venture firms.So,in order to break through those limitations,we are trying to found a new method to value venture firms-SWOT Value Appraisal Approach.We use SWOT Approach and AHP (Analytic Hierarchy Process) in valuing process.First find out the inner and outer factors which might affect firm's value.Then classify them into four categories,which are strengths,weakness,opportunities and threats,and give each factor a measure standard.Next,according to the information we collect,mark for each factor.At last, we gather all the marks and give the firm a final mark which represents its value.In order to find out whether SWOT Value Appraisal Approach is better than the former appraisal approaches,we choose 7 medicament firms which founded in the mainland then IPO on the Growth Enterprise Market of Hong Kong as our samples,and use SWOT Value Appraisal Approach and several traditional value Approaches to value them.Then we compare the results and analyze the value of SWOT Value Appraisal Approach.The main innovations of this paper are as follows,it points out that a firm's value could come from many different sources such as its present profit,future potential and so on,but not just only one or two sources;it use SWOT Analysis and AHP in firm value appraisal,which makes the result of appraisal turn out to be more exact and including more useful information for different users.