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Valuation of Sainsbury - Research Paper Example
Author : hansenjacey
Finance & Accounting
Pages 12 (3012 words)
Valuation of Sainsbury and writing the report Table of Contents Table of Contents 2 Motives 3 Future of retail- 4 Valuation of Sainsbury 5 Financing 12 Recommendation 14 Bibliography 18 Motives CF Inc is a large sized retail company with worldwide operations…
The low valuation of the company exposes it to dangers of potential takeover target. To enhance the value of the company the board is thinking of measures to improve the company valuation. There is an increased perception that the company will be able to benefit from geographical diversification and to improve its image in the market. The company management has come up with the idea of acquiring the UK based J Sainsbury Plc in a bid to improve the valuation of the company. The companies listed on the London Stock Exchange exhibit high level of compliance to corporate governance and corporate social responsibility practices. The domestic companies are mandated to adhere to the corporate codes and ethics. If a company fails to comply with any particular code then it has to explain the reason for the non-compliance. This ensures transparency in financial reporting and makes the financial reports of the company more credible. The retailers in the European region have a strong brand image and are highly responsive to the requirements of the customers. The major retail chains in UK like Tesco, Sainsbury are mature and are continually expanding internationally as well as in terms of wider range of products and services. The retailers in the country are diversified in the true sense with some of them even engaged in financial services. Even Sainsbury is involved in banking services. ...