Adjustment of the methods of business valuation for innovative companies’ assessment

Company’s value is one of the major economic characteristic, for its assessment and monitoring are demanded not only within purchase and sale transactions, but also within strategic management of enterprise. Today innovative companies develop more intensive and show higher capitalization in comparison with enterprises in traditional sector of economy. At the same time the higher level of risk for such companies should be mentioned. Within the framework of this study, specific characteristics of innovative businesses that influence valuation approaches have been identified. The analysis has shown that classical business valuation methods can lead to distorted results when applied to innovation-oriented companies due to their unique characteristics. In this regard, research is focused in presenting the directions for improving valuation approaches in cases where the object of evaluation is an innovation-oriented company.

Keywords: valuation of innovative business, methods of business valuation, management of a company value, innovation management.

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