Value Based Management

Value Based Management is a method of organizing the company, where the enterprise value is of particular meaning. Implementing the VBM results in upgrowth of company’s value, efficiency of operating activities (improvement of the sales/accounts receivable and sales/accounts payable ratios), upswing of quality and effectiveness of management and achieving better ability to satisfy customers’ needs.

NEM offers assistance in implementing VBM concept into companies, stressing the following factors, which have great impact on company’s value:

  • the growth of the rate of net sales
  • operating margin
  • income tax rate
  • investment in current and fixed assets
  • period of the business growth
  • cost of capital