FINANCIAL ANALYSIS AS A TOOL FOR ASSESSING THE VALUE OF AN ENTERPRISE IN THE CONDITIONS OF A CHANGE OF OWNERSHIP

Abstract

Changes in corporate ownership create a period of uncertainty in which enterprise value becomes a central issue for sellers, buyers, creditors, managers, and other stakeholders. The relevance of financial analysis in this context is determined by the need to distinguish the sustainable economic potential of a business from temporary fluctuations, accounting effects, and expectations associated with a transaction. A change of control may alter strategic priorities, access to financing, capital structure, corporate governance, and approaches to risk management. Therefore, enterprise valuation cannot be reduced to a single calculation or the mechanical use of historical financial statements. The article discusses the role of integrated financial analysis in forming a reasoned view of enterprise value during ownership transformation. Attention is paid to the information needs of potential investors and to indicators describing profitability, solvency, financial stability, operating efficiency, debt burden, and the capacity to generate cash flows. The issues of comparability and interpretation of financial ratios are considered, including the influence of the business cycle, sector characteristics, extraordinary events, and differences between accounting profit and actual cash generation. The article examines the place of the discounted cash flow approach in valuation, focusing on forecasting logic, the selection of a discount rate, the determination of terminal value, and the sensitivity of valuation to key assumptions. The possibilities and limitations of market multiples are discussed as a complementary means of comparing an enterprise with relevant peer companies and testing the consistency of valuation assumptions. Particular attention is given to risks arising during a transfer of ownership, including information asymmetry, excessive dependence on optimistic forecasts, hidden liabilities, unstable financing, concentration of control, and potential conflicts between current and prospective owners. The discussion covers the need to combine historical analysis, forward-looking estimates, and professional judgement within a single analytical framework. Such coordination is important for identifying factors capable of preserving, increasing, or reducing business value before and after a transaction. Financial analysis is considered as a practical instrument for substantiating investment decisions, negotiating transaction terms, and creating a transparent basis for dialogue between the parties involved in a change of ownership.