En fallstudie i företagsvärdering
When valuing a company there exist various possible valuation methods to use. The reason behind this study is that the authors were contacted by the owners of a company, who where interested to know how much their company would be worth in the case of a possible sale. Specific with this company is that it only has one customer and almost no tangible assets.Purpose: The purpose of this study is to make a survey of the different valuation methods that exist and to clarify which one is best suited in this particular case. This will result in a valuation of our case company.Method: We have used a qualitative method in the shape of a thorough literary study and an exposition of earlier research in the area of company valuation. Furthermore we have made two interviews by email with representatives from the Corporate Finance departments of Swedbank and Nordea.Theory:The theorethical framework of this study involves the different valuation methods that are described in the litterature that exists in the area. We have also shown some theory in the shape of earlier research that has been published in various scientific magazines.Empirical foundation: The empirical foundation contains two interviews carried out by email with representatives from the Corporate Finance departments of Swedbank and Nordea. Interviews have also been made with representatives from our case company. The balance sheet and income statement from our case company’s economic system have also been studied.Conclusion: This study shows that the most suitable valuation methods for our case company are the Discounted Cash Flow Model and the Residual Income Model. The study also shows that the most commonly used valuation methods are Multiple Valuation and Discounted Cash Flow Valuation. Finally the study shows that it is very difficult to reach one precise value when valuing a company with an uncertain future.
Source Type:Master's Thesis
Keywords:company valuation cost of capital discounted cash flow residual income
Date of Publication:03/20/2007