Holding's financial value assessment model

Holdings, which are a more effective form of business organization than a separately governed company, are often established in order to optimize company group governance as well as control and also due to a more suitable legal, political and tax environment in different countries, which is directed towards maximization of profit, decrease of expenditure or maintenance of vital company interests. The purpose of the article is to develop a holding organization assessment model, which would enable assessment of shareholder's financial value after establishing a holding, and to test this model in real life situations. The financial value is perceived as use to shareholders expressed via money, which they would receive after establishing a holding for the purpose of more effective company group management, activity costs minimization, tax advantages and effect of synergy. The use is assessed by comparing financial indicators of companies which are operating separately in the market with financial indicators of a holding company, i.e.: whereas the same companies are operating in a company group. The proposed assessment model has been tested in real life situations; it enables company managers to assess operating efficiency of the company group and to adopt decisions on establishing a holding.