Business Valuation

2.3.1.2.3 Third step 77 2.3.2 Characterizing the Conflict Situation 79 2.3.3 Valuation Methods 82 2.3.3.1 Basic Models of Marginal Price Determination 82 2.3.3.1.1 Basic Model of Decision Value Determination 82 2.3.3.1.1.1 Determination of the Base Program 82 2.3.3.1.1.2 Determination of the Valuation Program 83 2.3.3.1.1.3 Numerical Example 84 2.3.3.1.2 Basic Model of the Present Value Calculation 94 2.3.3.1.2.1 Structural Equality of the Price Limit Calculation and the Present Value Calculation 94 2.3.3.1.2.2 Extended Interpretation of the Term ¿Comparison Object¿ based on the Present Value Calculation 96 2.3.3.2 The State Marginal Price Model ¿ a General Model 97 2.3.3.2.1 Basics 97 2.3.3.2.2 The Model from the Presumptive Buyer¿s Perspective 100 2.3.3.2.2.1 Presentation 100 2.3.3.2.2.2 Numerical Example 102 2.3.3.2.3 The Model from the Presumptive Seller¿s Perspective 107 2.3.3.2.3.1 Presentation 107 2.3.3.2.3.2 Numerical Example 109 2.3.3.2.4 Consideration of Uncertainty 114 2.3.3.2.5 Critical Evaluation 120 2.3.3.3 Future Performance Value Method ¿ a Partial Model 121 2.3.3.3.1 Presentation 121 2.3.3.3.2 Relation between the Total Model and the Partial Model 25 2.3.3.3.2.1 Derivation of the Future Performance Value Method 125 2.3.3.3.2.2 Numerical Example 134 2.3.3.3.3 Consideration of Uncertainty 139 2.3.3.3.4 Critical Evaluation 142 2.3.3.4 Approximate Decomposed Business Valuation ¿ a Heuristic Model 145 2.3.3.4.1 Basics 145 2.3.3.4.2 Heurististic Planning Method of Approximate Decomposition under Consideration of Uncertainty 145 2.3.3.4.3 Combination between Business Valuation and Approximate Decomposition under Uncertainty 154 2.3.3.4.4 Critical Evaluation 157 2.4 Selected Problems of Decision Value Determination 159 2.4.1 Valuation of Small and Medium-Sized Enterprises 159 2.4.1.1 Valuation-relevant Idiosyncrasies 159 2.4.1.2 State Marginal Price Model in Light of Valuation-Relevant Idiosyncrasies 160 2.4.2 Effects on the Decision Value Through Modifications of the Decision Field 162 2.4.3 Determination of the Decision Value in Conflict Situations of the Merger Type and Demerger Type 166 2.4.3.1 Conflict Situations of the Merger Type 166 2.4.3.1.1 Presentation 166 2.4.3.1.2 Numerical Example 172 2.4.3.2 Conflict Situation of the Demerger Type 180 2.4.3.2.1 Presentation 180 2.4.3.2.2 Numerical Example 187 2.4.4 Joint Conflict Situations 199 2.4.4.1 Preliminary Remarks 199 2.4.4.2 Exemplary Representation of the Joint Situation of the Acquisition/Acquisition Type 200 2.5 Selected Control Questions 210 3 Mediation Function and Arbitration Value 213 3.1 Basics 215 3.2 Value Determination in Non-Dominated Conflict Situations 218 3.2.1 Further Investigation Steps within the Matrix of Functional Business Valuation 218 3.2.1.1 Overview 218 3.2.1.2 The Steps in Detail 218 3.2.1.2.1 First Step 218 3.2.1.2.2 Second Step 222 3.2.1.2.3 Third Step 224 3.2.2 Selected Valuation Methods 225 3.2.2.1 Preliminary Remarks 225 3.2.2.2 Combined Valuation Methods 229 3.2.2.2.1 Mean Value Method 229 3.2.2.2.2 Goodwill Rent Methods 231 3.2.2.3 Overview of typical method-specific characteristics and their arbitration-theoretic interpretation 241 3.2.3 Selected Problems at the Determination of the Arbitration Value 245 3.2.3.1 Determination of the Arbitration Value at an IPO 245 3.2.3.2 Arbitration Value Determination at Auctions of Mergers & Acquisitions 252 3.3 Value Determination in Dominated Conflict Situations 255 3.4 Selected Control Questions 257 4 Argumentation Function and Argumentation Value 259 4.1 Basics 261 4.2 Value Determination 270 4.2.1 Steps of Determination within the Matrix of Functional Business Valuation 270 4.2.1.1 Overview 270 4.2.1.2 The Steps in Detail 270 4.2.1.2.1 First Step 270 4.2.1.2.2 Second Step 271 4.2.1.2.3 Third Step 280 4.2.2 Selected Valuation Methods 282 4.2.2.1 Comparison Methods 282 4.2.2.1.1 Comparison Methods based on Single Valuation 282 4.2.2.1.1.1 Stock-and-Debt Method 282 4.2.2.1.1.2 Similar Public Company Approach 284 4.2.2.1.1.3 Initial Public Offering Approach 289 4.2.2.1.2 Comparison Methods based on Overall Valuation 289 4.2.2.1.2.1 Recent Acquisitions Approach 289 4.2.2.1.2.2 Market Multiples Approach 290 4.2.2.2 Finance-theoretic Methods 292 4.2.2.2.1 Capital Market-theoretic Methods (DCF Methods) 292 4.2.2.2.1.1 Basics 292 4.2.2.2.1.2 Weighted Avarage Cost of Capital Approach 302 4.2.2.2.1.3 Adjusted Present Value Approach 308 4.2.2.2.1.4 Net Method (Flow to Equity Approach) 311 4.2.2.2.1.5 Summary Overview 313 4.2.2.2.2 Methods of Strategic Valuation 319 4.3 Selected Control Questions 325 5 Principles of Business Valuation 329 5.1 Principles of Business Valuation as a Norm System 331 5.1.1 Characteristics 331 5.1.2 Purposes 333 5.1.3 Sources 336 5.2 Principles of Functional Business Valuation 338 5.3 Selected Control Questions 344 References 345 About the Authors 365 Index 367