Värderarens val av metod : Påverkansfaktorer vid företagsvärdering
Title: The appraiser’s choice of valuation method – factors that influences the choice of company valuation methodsSeminar date: 04/06/07Course: Master thesis in Business Administration, 10 Swedish credits.Authors: Anne Benedicks and Veronica ÖbergAdvisor: Eron OxingProfession of category: Financial analysts, auditors and company lawyers.Key words: Company valuation, valuation methods, cash flow analysis, comparative valuation, the net asset value method.The Main Issue: What is of decisive importance when choosing a special company valuation method?Purpose: The purpose of this paper is to identify, analyse and evaluate the most common methods of valuation for financial analysts, auditors and company lawyers and those factors that influences the choice of method.Method: A multiple survey has been implemented for the actual profession categories. Primary data was collected through semi-structured interviews and a questionnaire survey.Theoretical: The theoretical frame of reference is based upon the paper’s dependent variable, i.e. the role of the appraiser. The appraiser is dependent of following undependent variables: comparative valuation of company, situations of valuation, relevant information, the processes of valuation, the methods of valuation and common custom valuation.Empiricism: Material from the interviews and the questionnaire survey shows how the professional category respectively acts when they valuate a company and why and which valuation method is used. According to the interviews the financial analysts often uses comparative evaluation, the auditor uses the cash flow analysis while the lawyer chooses the net asset value method.Conclusion: The result of this paper considerable agrees to earlier research within the field. The main underlying factor for the appraiser to choose a certain evaluation method is simply depending on the actual situation. Example of other determining factors is customer relations, access to relevant information and which type of business under evaluation.
Source Type:Master's Thesis
Keywords:company valuation methods cash flow analysis comparative the net asset value method
Date of Publication:06/05/2007