Kohdearvosta

Kohdearvosta is a Finnish term used in business and public administration to describe the systematic evaluation of a target asset, project, or investment in order to determine its value, viability, and risk. The term combines kohde (target or object) and arvostus (valuation or appraisal). It is commonly used in contexts such as mergers and acquisitions, real estate appraisal, infrastructure projects, and program budgeting, but its exact meaning differs across sectors and firms. It is typically treated as a component of due diligence or project appraisal rather than a standalone formal method.

A typical kohdearvosta covers several elements: data collection about the target and market; financial analysis including forecasting and methods such as discounted cash flow or comparable measures; assessment of risks and sensitivity analysis; assessment of strategic fit and potential synergies; and due diligence covering legal, regulatory, contractual, and operational considerations. The output usually includes a valuation range, key findings, risk factors, and recommended actions.

The practice is guided by professional standards and national appraisal or accounting conventions where applicable. Because it is context-dependent, professionals often tailor kohdearvosta to the decision at hand and the information available, clearly documenting assumptions and uncertainties.

In use, kohdearvosta informs investment decisions, pricing, timing, and negotiation strategies, helping stakeholders understand value drivers and potential downside. See also valuation, due diligence, and project appraisal.