Research On The Method Of Enterprise Value Appraisal In Start - Up

With the development of private equity investment, enterprises have gradually become the object of market transactions,especially for the enterprises in the initial stage.Because of its financing needs, it becomes the vanguard of the market. However, the first premise of the enterprise market transactions is the valuation of the business, so the reasonable valuation for the enterprise of the start-up period has become a widely discussed topic in the academic and practical fields.Compared with mature enterprises, the start-up period companies are more focused on the company’s development prospects and growth potential, with the characteristics of high technology content, high risk and high growth. For this reason, the traditional valuation model used to assess the start-up period enterprise has certain limitation,resulting in the assessment value far away from the actual value. This paper is based on the theory of enterprise life cycle which divides the start-up period enterprise into three stages: incubation period, baby period and learning stage. According to their different value composition and evaluation characteristics,we choose the appropriate assessment method to ensure the rationality and accuracy of the valuation.The innovation of this paper is mainly from the perspective of private equity investment, it takes the enterprise life cycle theory and enterprise value assessment methods fused together. Starting from the characteristics of different stages of the enterprise,the paper comes to the conclusion: baby period enterprises choose venture investment analysis and learning stage enterprise adopt the method of combining the discounted cash flow with the real option。...