Talk:Business valuation/Archives/2013

Continued narrow focus on this page
After not looking at this page for probably a year, I continue to see that it focuses almost entirely on a narrow group of valuation techniques (DCF and asset methods), to the exclusion of others (such as real options, value functional and expanded net present value). Valueauthor (talk) 03:50, 16 January 2013 (UTC)ValueAuthor

"The recent experience of several of the most important companies in the U.S. economy, IBM, General Motors and DEC, illustrates the problems that can arise when intangible asset information is omitted from corporate financial statements. All three were all showing large profits using current accounting systems while their businesses were falling apart If they had been forced to take write-offs when the declines in intangible assets were occurring, the problems would have been visible to the market and management would have been forced to act on them much sooner. These deficiencies of traditional accounting systems are particularly noticeable in high technology companies that are highly valued for their intangible assets and their options to enter new markets rather than their tangible assets." I have issue with above paragraph. I think we should include the period when that statement was true. I don't know about General Motors, but i know IBM is currently the most healthy IT company and DEC is long dead. Using the word "recent" make it feel like year 2000


 * We also need to analyse the value of a company (especially financial services companies) from a liquidation perspective as well. This is a view favoured by regulators who look at the interests of deposit holders as opposed to the interests of either creditors (debt) or shareholders (equity). The value of a company from this viewpoint is measured by how much of their money deposit holders can expect to get back if the company is liquidated right now.


 * I see no discussion of the key premises of value which form the basic assumption for, and affect the value conclusion of, any business valuation assignment. The value in exchange as either orderly disposition of business assets or forced liquidation would be an appropriate choice when dealing with business valuation for liquidation purposes. —Preceding unsigned comment added by --Physitsky 07:57, 18 October 2007 (UTC)