| Beijing Yizhou Qicheng Information Technology Co., Ltd. is one of the members of High-tech Enterprises Executive Council subordinate to Zhongguancun Science Park. The corporation determined to enlarge its stock amount by increasing capital investment for internal and external investors in order to support its high-speed growth. The article will analyze how to assess company value, from the viewpoint of practical operation of capital increase and stock enlargement.The article can be divided into 2 parts. The first one makes theoretical analysis on value assessment of growth high-tech enterprises. With 3 sections in part one, the first section mainly describes the general characters of growth high-tech enterprises, the second section reviews the usual methods to assess company value, and the third section proposes the tentative plan to assess growth high-tech enterprises' value. Although there are various methods to determine growth phases of high-tech enterprises, the article is focused on the general characters of their expansion stage. Generally speaking, when the high-tech enterprises is in their expansion stage, they have achieved primary success in the technology R&D aspect, have formed primary market and have preparation to expend it; however they are weak in marketing, are eager to get capital support. At that time, net cash inflow comes into being in business operation; they are still faced with particular growth risks in spite of lowering risks. There are various value definitions, such as book value, market value, fair market value, internal value, liquidating value. The article mainly analyzes pricing problems in stock capital transaction, consequently with focus on market value and internal value. Although there are more than 10 methods to assess company value, they are generally classified into 3 classes, cost methods, market methods and revenue methods, which are different in assumption premise, methods, value focus, and advantages and disadvantages. The difficulty in assessing growth high-tech enterprises is lack of comparable companies and historical data, effective methods to measure growth, and methods to define income exactly, etc. As the pioneering securities market has not been established in this country, if we want to apply market methods to growth high-tech enterprises assessment, we could only take enterprises in main securities market as reference and must adjust factors, say, methods to select referenced companies, value proportion multiple, option value of exchangeable stock. The key factors to apply revenue method is to forecast the cash flow of the enterprises and to select appropriate discount. To forecast the cash flow of growth high-tech enterprises, it is necessary to divide the company life into 2 phases: high-speed development and normal balance phases. As for general traditional enterprises, discount is mainly composed of capital cost, however for the growth high-tech enterprises, the key to determine discount is to take risk premium into account. It is very important to take quantitative model estimation and qualitative factors analysis into account owing to the characters of growth high-tech enterprises, say, dynamics, non-stability, and virtual economy. In view of the assumption of high-speed growth in income forecast for growth high-tech enterprises, it is necessary to make detailed analysis for value-driven factors, such as increased investment, industry growth prospect, sustainable innovation competence. The internal value of companies stems from accounting capital and organization capital, and for growth high-tech enterprises, the proportion of organization capital accounting for company value is much higher than that in traditional enterprises. Because the value assessment should serve for specific business transactions, it is important to comprehensively analyze company's value at the standpoint of investors. If the company's controlling rights are transferred, it is required to take controlling rights premium into account. In the final part of... |
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