Small Business Valuation Methods by Yannick Coulon

Author:Yannick Coulon
Language: eng
Format: epub
ISBN: 9783030897192
Publisher: Springer International Publishing

The discount rate can be adjusted

An alternative to multiple scenarios is to implement a single base scenario and an adjusted discount rate. An increased discount rate, with an additional risk premium, corresponds to a pessimistic scenario. An optimistic scenario is associated with a lower discount rate.

The future cash flows projected by the seller and the buyer may be significantly different

The concept of valuation applied in this book implies that the subject company is an independent entity.

From an acquisition perspective within a holding group, significant synergies can be sources of additional profits (economies of scale, strategic diversification, consolidation of a competitive position, etc.). The valuation of a future affiliate from the buyer’s perspective is different than the valuation of an independent entity from the seller’s perspective.

The buyer’s forecast provides for synergies connected to the acquisition plan; however, the seller’s forecast measures the cash flows generated by its independent entity.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.