How Would You Value a Firm That You Were Trying To Purchase? - Research Paper Example

Extract of sample
How Would You Value a Firm That You Were Trying To Purchase?

Holton and Bates 2009, elucidates that there are a number of methods through which a potential purchaser of a particular firm may apply in an effort to realize the value of that firm. The methods may include: Free Cash Flow Methods, Asset-Based Methods, Option-Based Valuation method, and the method of using Comparables, These tools or methods of valuations would in return assist the potential purchaser of the firm to analyze and make an informed purchasing choice. Discussion To begin with, the asset-based method can be efficiently used be an intending purchaser to value a give firm. This method reveals the book value of a firm’s equity. In simpler terms, the asset based method shows the asset value of a firm or a company, less the debts of the firm. According to Strauss, 2011, a potential purchaser of a firm may find this method of valuation helpful since a company’s equity is all that a firm can be left with in an instance where it suddenly halt its selling its products or making money. This equity may be current assets, shareholders equity, and cash as tangible things, as well as brand name and management as intangible qualities. ...Show more

Summary

Running head: How would you value a firm that you were trying to purchase? What are the strengths and weaknesses of each of the valuation methods? Name: Institution: Date: Introduction Finding out the value of a particular firm is not an easy endeavor. However, this kind of undertaking can prove to be an essential component for purposes of effective management or in instances where an individual may was to purchase that firm…
Author : damorerafaela
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"How Would You Value a Firm That You Were Trying To Purchase?"
with a personal 20% discount.
Grab the best paper

Related Essays

Hire purchase contracts and Lease in business and how they work
The following study discusses the various methods by which leases are presently differentiated and accounted for in accordance with SSAP 21, the reason and content of ASB statement of codes, the criticism of the approach adopted by the present accounting standard and at last the amendments to the current accounting standard which have been proposed in light of this criticism.
6 pages (1500 words) Essay
Advertising and Sustained Fair Value: The Capitalisation of Brand Intangibles
The researcher of this research will look into one of the tools use by organisations in creating intangible asset – advertising and whether advertising create sustained fair value for the company in the context of the on-going debate regarding the increasing importance of intangibles in the global market economy.
23 pages (5750 words) Essay
Financial Policies and the Value of the Firm
This essay explores the impact of leverage on growth and thus market valuation; impact of taxation on financial policies and the value of the firm; impact of firm coverage by analyst; impact of financial strategy on financial policy. This paper also takes a glance at the financial flexibility. It is important that firms are financially flexible in response to variables n the environment.
14 pages (3500 words) Literature review
Misperception is Reality: Understanding the Hoover/Roosevelt Policy Continuum
It is remarkable that two such different individuals should have had so much in common when it came to solving America’s great economic crisis. To all outward appearances they were polar opposites. A contemporary news article observed that “when he is placed beside the sour and devious Hoover the contrast is almost startling”
8 pages (2000 words) Coursework
Do financial management decisions influence firm value?
BP formulated the main financial management decisions that devoted to a wise use of capital and a careful selection of sources of the capital in order to enable the company to expand in the direction of reaching its goals. The main financial management decisions are grouped into three broad categories that include; Investment, financial and dividend decisions that influence the effectiveness of the BP in the Community.
4 pages (1000 words) Essay
Imagine you are a small business owner
There are certain ratios that are more appropriate for analysis of large corporations and others that can be used to analyze small businesses. Three ratios that are appropriate for analyzing the financial statements of a small business are the net margin, current ratio, and inventory turnover.
4 pages (1000 words) Essay
Job Order versus Process Costing Techniques
Finally, the essay will explore companies that can effectively use the two systems based on the analysis of the differences between the two costing approaches. To begin with, before assigning costs to products and services, it is always necessary to accumulate the costs involved in the operation.
4 pages (1000 words) Research Paper
Assignment 2: You Are an Entrepreneur!
Apart from my studies, photography was my hobby and I practiced it in my idle times and in holidays. At this point of time, I consider turning my hobby into an official interest since it is a known fact that a person can be a success in field in which he has love and passion and wills to do the job with his acute interest and efficiency.
6 pages (1500 words) Assignment
Corporate Finance/the corporate form and initial public offerings
Initial Public Offering is characterized by information asymmetric which means that the buyer and the sellers have different levels of information in
7 pages (1750 words) Assignment
Development of Sukuk in the Middle East
The issuer of sukuk enters into a contractual agreement or promises to buy back the bonds at a par value on future date. The concept and the
12 pages (3000 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT