DOI: https://doi.org/10.18371/fcaptp.v4i27.154186

VALUE-BASED MANAGEMENT OF INDUSTRIAL ENTERPRISES: COMBINED APPROACH

Hanna Matukova, O. Nikolaichuk, Oksana Kuzmenko, Olga Mushkovych, Olena Usykova

Abstract


Cost management of the enterprise is an actual task today, given the slow recovery of the development dynamic of domestic enterprises. The opening of new markets, in particular, for industrial producers in the country, the establishment of cooperation with European consumers, requires additional financial investments in the modernization of production, the introduction of resource-saving technologies, business diversification, training of personnel. The paper shows that the results of the valuation of the property approach do not reflect the market conditions, in which do not take into account the impact of the external environment on the value of the enterprise, and therefore cannot serve as reliable data on the state of the enterprise in the vision of a potential investor whose sphere of interest is the projected future flow income and payback period of invested funds. Therefore, the estimation of the cost of an enterprise in the paper was conducted by using of two methods a combined approach, which includes the properties of the income approach (cash flow discounting method), and the property approach (net asset method).

On the example of the existing industrial enterprise, the work proposes the use of a combined approach to valuation, based on a calculation based on income and property approaches, the final results of which are reduced to the agreed value of the object of evaluation after the approval procedure. This approach will be widely implemented in the practice of industrial enterprises in the preparation and adoption of management decisions in the areas of application: attraction of invested funds, sale, merger or liquidation of the enterprise. The versatility of this approach will allow for control and evaluation of value at all levels of management: operational, tactical, and strategic. Conducting the ongoing monitoring on the basis of continuous monitoring of the cost of the enterprise will allow to timely identify and eliminate the negative factors that have an impact on maximizing the results of the enterprise in value terms, which makes the considered approach in the study one of the simplest and most effective management tools.


Keywords


valuation; value; enterprise; management; shares; approach.

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Copyright (c) 2018 Hanna Matukova, O. Nikolaichuk, Oksana Kuzmenko, Olga Mushkovych, Olena Usykova

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770