Performance of Valuation Methods in Financial Transactions
1st Edition
Will be published approx. on 11. June 2021
Book
Hardback
208 pages
978-1-78630-636-4 (ISBN)
Description
MODERN FINANCE, MANAGEMENT INNOVATION & ECONOMIC GROWTH SET Coordinated by Faten Ben Bouheni
Financial operations depend on potential value creation, the nature of the shareholder base, the level of development of the company and its growth prospects. They result from different commercial and financial strategies that must integrate the interest of the capital holders, the influence and strategy of the group in the initiative and the structure of the offer.
This book examines how, in practice, a company?s capital is structured, taking into account the interests of various stakeholders. The performance of valuation methods, which serve investors in their decision-making and financial arrangements, is developed in detail. Depending on the contexts present in the control market, the methods of stock market and transactional comparables, discounted cash flows and the patrimonial approach, will be favored to assess the value of a company?s shares. Performance of Valuation Methods in Financial Transactions is an in-depth analysis of equity transactions and is aimed at students and corporate finance professionals.
Financial operations depend on potential value creation, the nature of the shareholder base, the level of development of the company and its growth prospects. They result from different commercial and financial strategies that must integrate the interest of the capital holders, the influence and strategy of the group in the initiative and the structure of the offer.
This book examines how, in practice, a company?s capital is structured, taking into account the interests of various stakeholders. The performance of valuation methods, which serve investors in their decision-making and financial arrangements, is developed in detail. Depending on the contexts present in the control market, the methods of stock market and transactional comparables, discounted cash flows and the patrimonial approach, will be favored to assess the value of a company?s shares. Performance of Valuation Methods in Financial Transactions is an in-depth analysis of equity transactions and is aimed at students and corporate finance professionals.
More details
Language
English
Place of publication
London
United Kingdom
Target group
Professional and scholarly
Product notice
sewn/stitched
Cloth over boards
Dimensions
Height: 234 mm
Width: 156 mm
Thickness: 13 mm
Weight
467 gr
ISBN-13
978-1-78630-636-4 (9781786306364)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Additional editions
E-Book
03/2021
1st Edition
Wiley-IEEE Press
€139.99
Available for download
E-Book
03/2021
1st Edition
Wiley-IEEE Press
€139.99
Available for download
Person
David Heller is a lecturer in finance and leads the masters in finance at the ISC in Paris, France.
Content
Introduction vii
Chapter 1. Traditional Valuation Methods and Ways of Applying Them 1
1.1. Introduction 1
1.2. The cost of financial structure 3
1.2.1. Financial asset valuation 4
1.2.2. Optimal capital structure 10
1.2.3. Theories of organizations 19
1.3. Valuation measures and follow-up measures 23
1.3.1. Evaluation by comparative approach 24
1.3.2. Flow assessment 34
1.3.3. Valuation through propriety and mixed approaches 44
1.4. The perspectives of assessment: control operations 50
1.4.1. The shareholder 51
1.4.2. Control negotiations 59
1.4.3. Leveraged buyout operations 76
1.5. Conclusion 87
Chapter 2. The Performance of the Assessment and the Creation of Value from Control Operations 89
2.1. Introduction 89
2.2. Theoretical adjustments 90
2.2.1. Reconciliation of the traditional view with the Modigliani-Miller theorem 91
2.2.2. Optimizing the valuation methods 109
2.3. Contextual impacts and adjustments 131
2.3.1. Leverage transactions 132
2.3.2. Stock market multiples: from the impact of structures to anticipating profitability 136
2.3.3. Two delicate contexts for valuation: the bankruptcy situation and the start-up company 149
2.4. The creation of value resulting from control operations 158
2.4.1. The creation of value from the buyout of companies in bankruptcy 158
2.4.2. Abnormal returns resulting from control operations 159
2.4.3. The motivation of buyers to initiate control operations 161
2.5. Conclusion 163
Conclusion 165
Appendix. Demonstrating the Terminal Value (TV) of DCFs 169
References 171
Index 179
Chapter 1. Traditional Valuation Methods and Ways of Applying Them 1
1.1. Introduction 1
1.2. The cost of financial structure 3
1.2.1. Financial asset valuation 4
1.2.2. Optimal capital structure 10
1.2.3. Theories of organizations 19
1.3. Valuation measures and follow-up measures 23
1.3.1. Evaluation by comparative approach 24
1.3.2. Flow assessment 34
1.3.3. Valuation through propriety and mixed approaches 44
1.4. The perspectives of assessment: control operations 50
1.4.1. The shareholder 51
1.4.2. Control negotiations 59
1.4.3. Leveraged buyout operations 76
1.5. Conclusion 87
Chapter 2. The Performance of the Assessment and the Creation of Value from Control Operations 89
2.1. Introduction 89
2.2. Theoretical adjustments 90
2.2.1. Reconciliation of the traditional view with the Modigliani-Miller theorem 91
2.2.2. Optimizing the valuation methods 109
2.3. Contextual impacts and adjustments 131
2.3.1. Leverage transactions 132
2.3.2. Stock market multiples: from the impact of structures to anticipating profitability 136
2.3.3. Two delicate contexts for valuation: the bankruptcy situation and the start-up company 149
2.4. The creation of value resulting from control operations 158
2.4.1. The creation of value from the buyout of companies in bankruptcy 158
2.4.2. Abnormal returns resulting from control operations 159
2.4.3. The motivation of buyers to initiate control operations 161
2.5. Conclusion 163
Conclusion 165
Appendix. Demonstrating the Terminal Value (TV) of DCFs 169
References 171
Index 179