...Business Valuation Sample Company, Inc. as of December 31, 200X BUSINESS VALUATIONS & STRATEGIES 3402 N. 4 Street, Harrisburg, PA 17110 Phone: 717-234-7060 Fax: 866-482-3097 Web site: www.business-valuation-expert.com th David E. Coffman CPA/ABV, CVA Email: dave@business-valuation-expert.com 7$%/( 2) &217(176 CONCLUSION OF VALUE ...................................................................................................................................1 VALUATION SUMMARY .....................................................................................................................................2 ANALYSIS OF THE COMPANY ..........................................................................................................................3 DESCRIPTION AND HISTORY OF BUSINESS .............................................................................................................3 OPERATIONS ...........................................................................................................................................................3 MANAGEMENT .......................................................................................................................................................3 WORKFORCE ..........................................................................................................................................................3 SALES & MARKETING ........................................................
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...Individual Research Project: Oracle Corporation - Business Structure and Valuation. Executive Summary This research project summarizes the business of Oracle Corporation (Oracle), the company’s key competitive advantage factors and the valuation of the company. In this summary, the corporate structure of Oracle, the company’s business and competitive advantage and the valuation of the company are discussed. Oracle is involved in the business of providing enterprise resource software to its customers and clients. This paper is structured into 3 sections. • Section 1 – This section discusses Oracle’s business of providing enterprise resource software. • Section 2 – This section discusses Oracle’s key competitive advantages within its industry. • Section 3 – This section describes the valuation approaches and methods utilized in arriving at a valuation for Oracle Corporation. Table of Contents Section 1 – The Need for Business Valuation. -1- Section 2 – Scope of SSVS1 -2- Section 3 – Valuation Approaches and Methods -3- Section 4 – The Valuation Report -4- Conclusion -4- Bibliography -5- Section 1 The Need for Business Valuation Noting the number of transactions (mergers, acquisitions, initial public offerings (IPOs), etc.), litigations (contractual disputes, bankruptcies, intellectual property...
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...Economic Value Added (EVA) EVA is not actually a new discovery. The concept of EVA has been described in the first theoretical basis of capital structure and company value was presented in the academic papers by two financial economists, Franco Modigliani and Merton H. Miller in 1958, later has been known as M&M (Modigliani-Miller) theorem. The basic theorem states that the value of a firm is unaffected by how the firm is financed, whether by issuing stock or selling debt. However, Modigliani and Miller did not provide a technique to measure economic income in a firm. “The EVA Challenge: Implementing Value Added Change in an Organization”, he proposes that the EVA program encompasses three things essentially, which are a measurement system, an incentive system and a system of financial management. In measuring performance, EVA’s key ingredient is recognition of ‘capital charges’ – the cost of capital in a company, in a division, in a branch store, or in a product. EVA focuses on managerial effectiveness in a given year (Brigham and Ehrhardt 2002). Therefore, EVA basic formula is calculated using NOPAT to reflect firm’s return from its operations: EVA = NOPAT – After-tax dollar cost of capital used to support operations = NOPAT – (Total net operating capital x WACC) Where, NOPAT = Net Operating Profit After Taxes WACC = Weighted Average Cost of Capital Total Net Operating Capital is another term of Invested Capital (IC) From this formula, it can be seen that...
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...paper is to examine the various valuation factors that affect the financial performance of a particular company. This paper also includes research which involves a current literature review about the possible causes of both positive and negative outcomes of a company’s financial performance. The methodology used is qualitative research. The major findings entail that the nature of the business and its history is the greatest factor that most likely should be the central focus of the business itself. It can then be realized that the company’s value can be best assessed once it is determined that it has stayed in the industry for a long period of time. Introduction The business industry, above all else, is considerably one of the most complicated sectors of the economy. Nonetheless, businesses are, up to the extent, concentrated on providing the best to their customers and at the same time, on performing well in the market. So to say, the primary goal of any company is to become globally competent and successful in the industry. This objective is what mostly keeps the companies driven to continuously improve itself, its processes, its products and its services. In light with all of this, the value of companies is chiefly influenced by several factors. These factors somehow contribute to the outcomes of the financial performance of the company. More than that, these aspects are deemed to be the most important that every company in the business industry always put a high regard...
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...Executive Summary 3 Opinion of Value 4 Assumptions and Limiting Conditions 5 Business Overview 7 History of company 7 Services provided 8 Self-Service 8 À la carte Menu 10 Catering services 11 Education industry analysis and its impact on canteen business 12 Conclusion 14 Production Process 15 A la carte menu 16 Self-Service 17 Customers analysis 18 Suppliers 19 Human resources 20 Description of facilities 21 Furniture and Fitting 23 Equipment and Machine 24 Financial Analysis 25 Asset Valuation: Book Value Method 25 Market valuation method: The going market rate method 26 Income-based business valuation: Return on investment (ROI) method 27 References 28 Executive Summary Mr. Bernard, owner of the ABC Food Outlet, is contemplating to sell the canteen at the ABC University. Our Boss approached Mr. Bernard, upon hearing about the upcoming sale of the canteen, with a possible offer to buy the canteen. Mr. Bernard offered to sell the canteen for the price of RM500, 000. However, since he is not sure about whether the canteen is a good buy at the price of RM500,000 , the boss asked out team to carry out valuation of business and to hand him and business valuation report for the canteen at ABC University. In this report, valuation of business for the ABC Food Outlet will be carried out. The ABC Food Outlet is located on the campus of ABC University and has been in business at the ABC University for the past 15 years. The aim of this report is to...
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...by increasing the intangibles. The intangibles are the growth drivers for the Indian Economy. The high productive sector is the service sector whose contribution to GDP of the nation has displaced the contribution of Agriculture and Industry and the contribution is rising. In service sector nearly 22% of the population of the nation is contributing around 55% of GDP. The reason for high productivity can be attributed to only intangibility. The financial statements of the service sector enterprises do not depict the intangibles – because of difficulty in identification, measurement and valuation. The growth of the Service Sector may be slowed down if the service firms which are mostly knowledge driven are not growing and the two major obstacles in the growth of knowledge driven firms are (a) Finance and (b) Coverage of risk. Since the methodologies have not been developed for valuation of the intellectual properties, there are no reported resources on the basis of which sources for raising the resources can be approached and also the assets can be insured. While addressing a gathering of students, an eminent speaker has said “Help the country by investing in yourself.” He emphasised that by investing in self one can create intangibles (intellectual property) which can bring tangible development of the nation. But question is how to measure the intangible? The measurement of intellectual...
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...The Certification that I chose to research was one that I knew nothing about, Certified Valuation Analyst. A Certified Valuation Analyst accreditation is a statement that an individual has attained a level of knowledge in business valuations. Once this level is reached, and the National Association of Certified Valuation Analysts (NACVA) considers this level worthy of recognition, one is then awarded the designation of Certified Valuation Analyst (CVA). To become certified by NACVA, the candidate is required to successfully complete a meticulous training and testing process. A requirement to becoming a CVA is that the applicant must be a Certified Public Accountant (CPA) registered in his or her state. In addition to this requirement, the CVA must maintain at least 40 hours of Continuing Professional Education (CPE) each year. NACVA also requires that CVAs obtain at least 12 hours per year of CPE in areas related to business valuation and/or litigation support. There is a five day training program that is offered by NACVA. There is also a comprehensive two-part exam. Part 1 is a five hour exam, and Part 2 is a take-home/in office exam that incorporates various case studies and requires performing a complete business valuation. The CVA is an elite accreditation for CPAs who are the most qualified professionals to provide business valuation services. As a general rule, CPAs, through their extensive training, combined with experience in tax, auditing, accounting for small businesses...
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...Valuation Fundamentals Table of Contents www.finaticsonline.com Table of Contents > > > > > Introduction – Concept of Fair Value – Who uses Valuation? Valuation & Wealth Maximization Valuation Approaches Valuation Methods Is there a ‘Best’ method? > > Which method is best suited ? – Public vs Private Company – By Scenario – By Sector Valuation FAQs – General – DCF – Comparables Press Alt, W, F for maximizing viewing area Equity Valuation Fundamentals Introduction – Concept of Fair Value www.finaticsonline.com At Finatics, we define Equity Valuation as “A process that involves determining „Fair Value‟ of a company‟s equity in order to assist buy/sell decisions for the purpose of Financial or Strategic Investment ” So what is Fair Value of an investment? How should the worth of an Investment be determined ? …(Contd) Put Simply, Fair Value is the price at which, one will get the desired rate of return when the investment is sold to a willing & able buyer. The worth of an investment is determined by whether it is meant for long term use to generate returns (i.e. Strategic Investment) or for resale when the „right price‟ or „fair value‟ is achieved (Financial Investment). The purpose of Valuation is to determine a fair value range of an investment (or capital asset) using one or more of several available techniques As discussed, investment related demand will be driven by expected return resulting...
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...UNIVERSITY OF SOUTHERN CALIFORNIA Marshall School of Business Fall 2011 Financial Analysis and Valuation FBE 529 Monday, Wednesday Class Instructor: Lloyd Levitin Time and Place: 3:30 – 4:50 P.M.; JKP 212 Office: Accounting 301E Office Hours: M, W: 2:15-3:15 P.M.; T: 5-6 P.M., and by appointment Office Phone (USC): 213-740-6524 Office Phone (Home): 310-858-0260 Email Address: levitin@marshall.usc.edu (preferred method of communication; please indicate on your email communication the class you are in and when it meets). Teaching Assistant: Brian Kaemingk (email: brian.e.k@gmail.com Course Website: On Blackboard http://blackboard.usc.edu COURSE OBJECTIVE Understanding what determines the value of a firm and how to estimate that value is a prerequisite for making rational business decisions. Entire industries (investment banking, securities analysis, and consulting) have grown prosperous providing valuation skills to investors and managers. The objective of this course is to give a general grounding in the valuation approaches used by successful practitioners. We cover discounted cash flow models, market multiple models, as well as specialized models used for M&A transactions and LBOs. We focus on valuation of businesses at the divisional and corporate levels. The course emphasizes practical and “real world” applications of valuation methodologies. The course is of interest to those...
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...Journal of Financial Economics 53 (1999) 409 }437 Valuing IPOs Moonchul Kim , Jay R. Ritter * Department of Accounting, KyungHee University, C1 Hoegie-Dong, Dongdaemun-Ku, Seoul 130-701, South Korea Department of Finance, School of Business Administration, University of Florida, Gainesville, FL 32611-7168, USA Received 3 June 1997; received in revised form 18 August 1998 Abstract The use of accounting information in conjunction with comparable "rm multiples is widely recommended for valuing initial public o!erings (IPOs). We "nd that the price}earnings (P/E), market-to-book, and price-to-sales multiples of comparable "rms have only modest predictive ability without further adjustments. This is largely due to the wide variation of these ratios for young "rms within an industry. P/E multiples using forecasted earnings result in much more accurate valuations than multiples using trailing 1999 Elsevier Science S.A. All rights reserved. earnings. JEL classixcation: G24 Keywords: Initial public o!erings; Valuation; Comparable "rms * Corresponding author. Tel.: #1-352-846-2837; fax: #1-352-392-0301. E-mail addresses: kimc@nms.kyunghee.ac.kr (M. Kim), jritter@dale.cba.u#.edu (J.R. Ritter) This paper is based on Moonchul Kim's University of Illinois Ph.D. dissertation. We would like to thank seminar participants at Boston, Emory, Georgetown, Humboldt (Berlin), and Vanderbilt Universities, the Universities of Miami and Texas, the Stockholm School of Economics, the Chinese University...
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...Journal of Financial Economics 53 (1999) 409 }437 Valuing IPOs Moonchul Kim , Jay R. Ritter * Department of Accounting, KyungHee University, C1 Hoegie-Dong, Dongdaemun-Ku, Seoul 130-701, South Korea Department of Finance, School of Business Administration, University of Florida, Gainesville, FL 32611-7168, USA Received 3 June 1997; received in revised form 18 August 1998 Abstract The use of accounting information in conjunction with comparable "rm multiples is widely recommended for valuing initial public o!erings (IPOs). We "nd that the price}earnings (P/E), market-to-book, and price-to-sales multiples of comparable "rms have only modest predictive ability without further adjustments. This is largely due to the wide variation of these ratios for young "rms within an industry. P/E multiples using forecasted earnings result in much more accurate valuations than multiples using trailing 1999 Elsevier Science S.A. All rights reserved. earnings. JEL classixcation: G24 Keywords: Initial public o!erings; Valuation; Comparable "rms * Corresponding author. Tel.: #1-352-846-2837; fax: #1-352-392-0301. E-mail addresses: kimc@nms.kyunghee.ac.kr (M. Kim), jritter@dale.cba.u#.edu (J.R. Ritter) This paper is based on Moonchul Kim's University of Illinois Ph.D. dissertation. We would like to thank seminar participants at Boston, Emory, Georgetown, Humboldt (Berlin), and Vanderbilt Universities, the Universities of Miami and Texas, the Stockholm School of Economics, the Chinese University...
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...PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS INTERNATIONAL BUSINESS SCHOOL COURSE WORK « Business Valuation on the basis of Damodaran model » Corporate Finance Student: Pavel Terefera Supervisor: Irina Sokolnikova Moscow 2015 Contents Introduction _____________________________________________ 3 Chapter 1. Valuation______________________________________ 4 1.1 Valuation in portfolio management_________________________ 7 1.2 Valuation in acquisition__________________________________ 10 1.3 Valuation in corporate finance_____________________________ 10 Chapter 2. Approaches to Valuation___________________________ 11 2.1 Profitable Approach_____________________________________ 12 2.1.2 Income capitalization approach __________________________ 12 2.1.3Method of discounted cash flows__________________________ 14 2.1.4 Discounted Cash Flow Valuation on example of JSC NLMK____ 20 2.2 Relative Valuation Approach______________________________ 23 Conclusion _______________________________________________ 28 Bibliography ______________________________________________ 29 Introduction. Knowing the value of an asset may not be a guarantee for success for investor, but it does help us make more informed judgments. A postulate of sound investing is that an investor does not pay more for an asset than its worth. In conditions of market economy when all transactions are made "on fear and risk" their participants, both seller...
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...since making the first ever mobile call in the UK on 1 January 1985. Today, more than 400 million customers around the world choose us to look after their communications needs. In 30 years, a small mobile operator in Newbury has grown into a global business and one of the most valuable brands in the world. We now operate in around 30 countries and partner with networks in over 50 more. In an increasingly connected world, it’s no longer just about being able to talk and text. Our network allows people to share images and videos as soon as they’re captured; to share thoughts and feelings as soon as they’re created. And because we now do more than just mobile in many markets, more customers look to Vodafone for great value in their fixed line and broadband services too. Vodafone understands that businesses need a communications partner with solutions that scale and adapt as their business needs change. They may need a few smart phones for voice and email on the move. Or they may require a fully integrated solution that enables sharing of documents, video conferencing and access to corporate applications from any location. Whatever their size and whatever their need, we are constantly looking for new, innovative ways to help our business customers grasp every opportunity in a simple and straightforward way. Our commitment to the community in which we operate extends beyond the products and services we offer. The cornerstone of our commitment to global social investment is the Vodafone...
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...|IPO Valuation Procedure in Bangladesh | | | | | | | Internship Report IPO Valuation Procedure in Bangladesh Prepared for: Professor Shakil Huda Chairman IBA Career Center Institute of Business Administration University of Dhaka Supervised by: MsSyedaMahrufa Bashar Lecturer Institute of Business Administration University of Dhaka Prepared by: Asif Rezwan Roll: 64, MBA 44D and Management Trainee Officer, LankaBangla Investments Limited Institute of Business Administration University of Dhaka June 24, 2012 June 24, 2012 MS. Kanij Fahmida Assistant Professor Department of Accounting Faculty of Business Studies Bangladesh University of Business & Technology(BUBT) Dear Sir, Subject: Letter of Transmittal for Internship Report I, Ibna Shina Shibly, am submitting my internship report on “IPO Valuation Procedure in Bangladesh”. The internship period and the subsequent effort in writing this...
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...has available for his company. Based on the scenario, choices will include the high tech approach, or broker distributor. Team C chose the best approach to fit his need, and to represent what he has delivered for many years. Guillermo’s goal is to retire one day, and his best route to a safe, and fulfilling retirement is the hi-tech approach. High-tech Approach Guillermo’s largest competition has sparked uproar, in the communities of Sonora. Along with large retailer’s influence expanding, affordable housing, new establishments, and rock bottom pricing, he has to consider taking a different approach to stay aligned with his competition. Since the 90’s, two companies combined services, and manufacturing has created a dent in Guillermo’s business. Some of Guillermo’s foreign competitors use the high-tech approach, which provides exact specifications with lower cost. The influx in jobs raised the cost of labor, and while all this was occurring, Guillermo has watched profits shrink, and prices fall, while cost went up. If Guillermo decides to take...
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