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What is the importance of enterprise value assessment?

Enterprise value assessment is one of the important methods to determine the true value of an enterprise. Its importance is mainly reflected in the following aspects:

Supporting enterprise decision-making: Enterprise value assessment can help enterprise management We can better understand the true value of the enterprise and provide an important basis for corporate decision-making.

Promote enterprise development: Enterprise value assessment can help enterprises understand their own strengths and weaknesses, clarify their own development direction and strategic goals, and provide strong support for the company's future development.

Promote investment and financing: Enterprise value assessment can provide a reference for enterprises’ investment and financing activities, increase the confidence of investors and financing institutions, and promote enterprises to obtain more financing.

Promote corporate mergers, acquisitions and reorganizations: Enterprise value assessment can help companies understand the true value of target companies, provide a reference for corporate mergers, acquisitions and reorganizations, and reduce merger and acquisition risks.

Assessing enterprise performance: Enterprise value assessment can evaluate enterprises from the perspective of performance, thereby promoting enterprises to optimize management, improve efficiency, and enhance core competitiveness.

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