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Finance and Credit
 

Formation of a company's development strategy using the model of value rapid assessment

Vol. 24, Iss. 11, NOVEMBER 2018

PDF  Article PDF Version

Received: 3 August 2018

Received in revised form: 20 August 2018

Accepted: 3 September 2018

Available online: 29 November 2018

Subject Heading: BUSINESS VALUE

JEL Classification: G32, G34, H25

Pages: 2629–2644

https://doi.org/10.24891/fc.24.11.2629

Finogenova Yu.Yu. Plekhanov Russian University of Economics, Moscow, Russian Federation
Finogenova.YY@rea.ru

https://orcid.org/0000-0003-3336-927X

Mochalina E.P. Plekhanov Russian University of Economics, Moscow, Russian Federation
Mochalina.EP@rea.ru

https://orcid.org/0000-0002-4131-1986

Ivankova G.V. Plekhanov Russian University of Economics, Moscow, Russian Federation
Ivankova.GV@rea.ru

https://orcid.org/0000-0003-2573-9074

Subject This article examines the issues related to the implementation of strategic planning, taking into account the search for alternative actions that enable the company to improve the balance of its future incomes and expenditures in the long term.
Objectives The article aims to form a company's development strategy using the offered original model of value rapid assessment.
Methods For the study, we used the basic economic models with a focus on the concept of economic value added (EVA).
Results As a result of analysis of financial risks and indicators of the company, we offer a company's development strategy through acquiring the partner company's business.
Conclusions and Relevance The offered approach helps improve the efficiency of strategic planning in the company. The results of the study can be used in the field of corporate governance, decision-making in the field of private and public corporate acquisitions taking into account the uncertainty of the growth rate of the merged company and the related advantages and risks.

Keywords: economic value added, EVA, financial figure, company value, capital structure

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