PECULIARITIES OF CHOOSING THE METHOD OF ESTIMATING THE MARKET VALUE OF BUSINESS IN DIAGNOSING ITS ECONOMIC SECURITY

Abstract

The article is devoted to the characteristics of methods of estimating the value of business in diagnosing its economic security. The study aims to analyze modern methods of estimating the value of business in view of the peculiarities of unstable market operation in modern conditions. Also, the peculiarities of the methodology of business value assessment taking into account the size of the business are investigated. Emphasis is placed on the need to form an assessment of the value of the business in the diagnosis of economic security of such business, taking into account the state of the market and the reliability of the data used by the appraiser in the calculations. The relevance of the topic of the study is the need to form a comprehensive approach to assessing the value of business in diagnosing its economic security. This approach should cover as much as possible the parameters of the business, the state of the market and the reliability of the data for calculations. Methods of scientific generalization, analysis, synthesis and comparison were used during the research. As a result of the study, it was concluded that in general, all approaches, regardless of the size of the business are interrelated. Each of them involves the use of different types of information obtained in the market. When choosing an approach, the evaluator has different perspectives. Although these approaches are based on data collected in the same market, each deals with different aspects of the market. Under ideal market conditions, all approaches to business valuation should lead to approximately the same result. However, in the real economy, markets are almost unbalanced. There is a logical need to study and identify effective methods of assessing the value of the business to take into account the safety of such business, which allowed to calculate a generalized, representative assessment of the value of the business. Thus, in modern conditions, the process of successful operation of business largely depends on the level of economic security. In our opinion, the use of comprehensive business valuation based on a combination of all valuation methods eliminates one-sidedness and more realistic assessment of business value and obtain a reliable source of information for its forecasting in order to make informed management decisions. The experience of assessing business value abroad based on the application of international assessment standards is outlined. The development and application of methodological approaches to assess the current level of business value and determine the impact of this indicator on the level of economic security of enterprises will allow to make sound economic decisions and predict the response of economic security to appropriate action.