The conception for evaluation of financial profit in holding establishment

Abstract

Holdings, which are more effective form of business organisation than individually managed enterprises, are most frequently established in order to optimise management and control of the group of enterprises, as well as due to more appropriate legal, political and taxing environment in different states in order to maximise profit, to minimise expenditure or to guarantee vital and important interests of an enterprise. The aim of the article is to design the model for holding organisation evaluation, which would allow evaluating of financial profit of stockholders after having established the holding. Financial profit is understood as money-expressed profit for stockholders, which they would get after having organised the holding due to more effective management of the group of enterprises, minimisation of activity input, taxing discounts and synergy effect. This profit is evaluated by comparing the financial indicators of the enterprises that functioned in the market individually with the financial indicators of the holding, i.e. when the same enterprises function in the group. The offered model for evaluation is checked practically and it allows enterprise managers to evaluate the effectiveness the activity of enterprises' group and to make decisions on holding establishment.