Business Valuation - Functions, Methods, Principles

And assigns them to the relevant function of business valuation. Breaking down business valuation into three stages is a major step toward improving the transparency of the process. The steps introduced in this book are 1. Determination of relevant data acquisition, 2. Transformation of relevant data in a value, 3. Use of the determined value. A key aspect of this textbook is its analysis of the valuation process from the perspective of both buyer and seller. Ultimately, the book will present readers with the key principles of functional business valuation, which if it had been applied more widely, the authors argue, could have mitigated the severity of at least some recent financial crises.The book offers students, researchers, and practitioners interested in or involved in valuation clearly formulated learning goals and selected control questions. The systematic concept outlined also makes the book very well suited for self-study.

Inhaltsverzeichnis:

Preface VContent Overview VIIList of Figures XVList of Symbols XXI1 Fundamentals of Business Valuation 11.1 Basic Terminology 31.2 Concepts of Business Valuation 111.2.1 Functional Business Valuation Theory via the German School 111.2.2 Neoclassical Business Valuation Theory via the Anglo-Saxon School 161.3 Occasions of Business Valuation 371.3.1 Requirement to Systematize Occasions of Business Valuation 371.3.2 Systematization of Occasions of Business Valuation According to the Main Functions 391.3.2.1 Conflict Situations of the Acquisition/Sale Type and of the Merger/Demerger Type 391.3.2.2 Non-dominated and Dominated Conflict Situations 411.3.2.3 Disjoint and Joint Conflict Situations 411.3.2.4 One-Dimensional and Multi-Dimensional Conflict Situations 421.4 Matrix of Functional Business Valuation and Overview of Methods of Business Valuation 461.4.1 Matrix of Functional Business Valuation 461.4.2 Overview of Methods of Business Valuation 481.5 Selected Control Questions 522 Dec ision Function and Decision Value 532.1 Basics 552.2 Determination of Multi-Dimensional Decision Values 602.2.1 Utility Values as Basics for Decision Value Determination 602.2.1.1 The Term "Utility Value"602.2.1.2 Target Plan and Decision Field as Parameters of theUtility Value 602.2.2 A General Model for the Determination of a Multi-Dimensional Decision Value 652.2.2.1 Determination of Decision Values as a Two-Step Calculation 652.2.2.2 Determination of the Base Program 652.2.2.3 Determination of the Valuation Program 662.2.2.4 Multi-Dimensional Decision Value 672.2.2.5 Set of the Acceptable Conflict Resolutions 692.2.2.6 Set of Agreement Resolutions 692.3 Determination of One-Dimensional Decision Values in Non-Dominated, Disjoint Conflict Situations of the Acquisition/Sale Type 702.3.1 Examination steps on the Matrix of Functional Business Valuation 702.3.1.1 Overview 702.3.1.2 The Steps in Detail 712.3.1.2.1 First Step 712.3.1.2.2 Second Step 752.3.1.2.3 Third step 772.3.2 Char acterizing the Conflict Situation 792.3.3 Valuation Methods 822.3.3.1 Basic Models of Marginal Price Determination 822.3.3.1.1 Basic Model of Decision Value Determination 822.3.3.1.1.1 Determination of the Base Program 822.3.3.1.1.2 Determination of the Valuation Program 832.3.3.1.1.3 Numerical Example 842.3.3.1.2 Basic Model of the Present Value Calculation 942.3.3.1.2.1 Structural Equality of the Price Limit Calculation and the Present Value Calculation 942.3.3.1.2.2 Extended Interpretation of the Term "Comparison Object" based on the Present Value Calculation 962.3.3.2 The State Marginal Price Model - a General Model 972.3.3.2.1 Basics 972.3.3.2.2 The Model from the Presumptive Buyer's Perspective 1002.3.3.2.2.1 Presentation 1002.3.3.2.2.2 Numerical Example1022.3.3.2.3 The Model from the Presumptive Seller's Perspective 1072.3.3.2.3.1 Presentation 1072.3.3.2.3.2 Numerical Example 1092.3.3.2.4 Consideration of Uncertainty 1142.3.3.2.5 Critical Evaluation 1202.3.3.3 Future Perfor mance Value Method - a Partial Model 1212.3.3.3.1 Presentation 1212.3.3.3.2 Relation between the Total Model and the Partial Model 252.3.3.3.2.1 Derivation of the Future Performance Value Method 1252.3.3.3.2.2 Numerical Example 1342.3.3.3.3 Consideration of Uncertainty 1392.3.3.3.4 Critical Evaluation 1422.3.3.4 Approximate Decomposed Business Valuation - a Heuristic Model 1452.3.3.4.1 Basics 1452.3.3.4.2 Heurististic Planning Method of Approximate Decomposition under Consideration of Uncertainty 1452.3.3.4.3 Combination between Business Valuation and Approximate Decomposition under Uncertainty 1542.3.3.4.4 Critical Evaluation 1572.4 Selected Problems of Decision Value Determination 1592.4.1 Valuation of Small and Medium-Sized Enterprises 1592.4.1.1 Valuation-relevant Idiosyncrasies 1592.4.1.2 State Marginal Price Model in Light of Valuation-Relevant I