--%>

Explain realization of name valuation in company

I suppose that a valuation consciously realized in my name tells me how much I have to offer for the company, am I right?

E

Expert

Verified

No. This implies to neglect, firstly, a valuation depends upon certain hypotheses of flow generation and risks (as the value always depends upon expectations); moreover a company will have various values for various buyers. And second thing, that the transaction will create no value for the buyer, if the acquisition price is equal to the value: if the price paid in an acquisition is equivalent to the value for the buyer then the value created through the acquisition equals zero.

Conversely, one should remember that value normally represents a number in a spreadsheet, whereas the price is frequently cash. Here is a huge difference among €20 million in cash and €20 million written in form an Excel spreadsheet or in form a valuation report.

   Related Questions in Corporate Finance

  • Q : Define the term Stock Market crash

    Stock Market Crash was responsible for the Great Depression. Middle class families lost all their savings as they had gambled the market on margin.Those banks which were under the loan ofbrokers’ started removing money out of the savings account

  • Q : Data Case Please Assist with the

    Please Assist with the attached Data Case Assignment

  • Q : Problem on annual lease payments Taurus

    Taurus Corporation needs a computer, which it can buy for $100,000. Taurus will depreciate the computer uniformly over its useful life of 5 years. An investment tax credit of 7% is also available, and the computer will have no residual value. Taurus plans to borrow th

  • Q : Intrnational financer what are the

    what are the objectives of international finance

  • Q : Problem on Bank branch networks While

    While banks across the United States and Europe are cutting down their number of branches, the number of bank branches in Hong Kong has increased in the same period. Hong Kong Monetary Authority statistics show the number of bank branches in Hong Kong at the end of 20

  • Q : Compute the present value of the

    Is this possible to value companies by computing the present value of the Economic Value Added (EVA)?

  • Q : Briefly describe the financial services

    1 FINANCIAL SERVICES BY BANKS Financial system facilitates the transformation of savings of individuals, government as well as business into investment and consumption. It consists of

  • Q : What are Stock exchanges Stock

    Stock exchanges: A stock exchange provides services useful for trading, issue and redemption of shares and other securities for traders and brokers. They will also provide facility for payment of income and dividends for listed securities. Securities

  • Q : Explain the result of volatility

    Explain the result of volatility structure.

  • Q : Liquidity Ratios Liquidity Ratios :

    Liquidity Ratios: Such ratios comprise the Current Ratio and the Quick Ratio or the acid test ratio. Liquidity ratios demonstrate the Liquid position of a company in the short term that is the capability of a firm to pay its obligations in short term.