This master's thesis describes an introduction to business valuation, the process of strategic and financial analysis and some methods for determining the value of the company in its theoretical part. The goal of this thesis is the business valuation of the Pivovar Svijany, a.s. as of December 1, 2011. Strategic and financial analyses of the company were worked out in order to determine the value of the company. Quantification of value generators and financial plan processing are the basis of the valuation itself. The income-based methods, used in this work, are DCF in the modification FCFF, FCFE and EVA. The book value method is being added as a comparison to income methods. Resulting findings had confirmed a good financial position of the brewery. The value of Pivovar Svijany, a.s. calculated by using the two-stage FCFF method was 3 781 125 000, - CZK as of December 1, 2011.

The aim of the thesis is an estimation of the market value of the company Mlékárna Hlinsko, s.r.o. as of 31st December 2010, using the DCF Entity method. For this purpose, the financial and the strategic analyses and a prognosis of the value generators were performed, followed by a financial plan.

The goal of the diploma thesis is to evaluate company Le Montmartre located in London to know the value of the company when Le Montmartre will be contained from four food shops. It is important to know the value of the company because Le Montmartre business development will take a lot of owner's energy and personal time, so the future value of the business will be a good motivation for him.. This diploma thesis is divided into 2 sections, theoretical and practical. Practical part involved company's introduction, product portfolio, strategic analysis and finance analysis. Company was evaluated by Free cash flow to firm within two phases. Le Montmartre is analysed and evaluated like two separated entities. Le Montmartre is a patisserie and boulangerie and Le Montmartre as a catering company. The value of Le Montmartre as patisserie and boulangerie is estimated on 2 675 295 pounds and Le Montmartre as catering company on 3 739 700 pounds. Company was evaluated on 31.12.2011 in real prices.

Este documento tiene como primer objetivo mostrar los diferentes métodos de valoración de empresas estudiados en las últimas décadas. No obstante, el trabajo profundiza en la valoración de pequeñas empresas como tema central, debido a que hasta la actualidad no se las ha investigado con el mismo interés que a empresas corporativas, lo que pone en evidencia una falta de consenso. Así, el segundo objetivo es ofrecer al lector una fuente de información, a manera de compendio inicial, que motive a investigar el tema, realizar estudios específicos, servir de materia de tesis académicas, entre otras contribuciones. El primer capítulo de este trabajo aborda el tema partiendo de la definición del concepto de valor, y sustenta la diferencia entre valor y precio. Asimismo, en él se realiza una reseña de la evolución del estudio de valoración de empresas, se explica qué es una pequeña empresa en el marco nacional e internacional, y, finalmente, se aborda la valoración de pequeñas empresas en específico. Por su parte, el segundo capítulo describe los métodos de valoración de empresas más utilizados y aceptados, y presenta sus ecuaciones y guía detallada de uso. El tercer capítulo expone errores encontrados en valoración de empresas; el cuarto capítulo describe seis metodologías de valoración de pequeñas empresas, y presenta sus respectivas ecuaciones y los pasos a seguir para su uso. Finalmente, el quinto capítulo se enfoca en un tema de similar importancia, la estimación del costo de capital en pequeñas empresas, el cual genera, inclusive, mayor controversia. / The first objective of this document is to show the different Company valuation methods studied in the last decades. However, the work looks into the valuation of small business, as a central topic, because until now they have not been investigated with the same interest than the Corporative Companies, which evidences a lack of consensus. Thus, the second objective is to offer a source of information to the reader, as an initial summary, that motivates to investigate the topic, do specific studies, serve as a topic for Academic Thesis, among other contributions. The first chapter of this paper approaches the topic starting from the definition of the concept of the value and supports the difference between value and price. Moreover, there is an outline of the evolution of the study of valuation of Companies, it is explained what is a small business in the national and international framework and, finally, the valuation of specific small business is approached. On its part, the second chapter describes the most used and accepted companies’ valuation methods and presents its equations and detailed user guide. The third chapter shows mistakes found in companies’ valuation; the fourth chapter describes six methodologies of the valuation of small business and shows its respective equations and the steps to follow for its use. Finally, the last chapter focuses on a topic of similar importance, the estimation of the capital cost in small companies that generates, even, more controversy. / Trabajo de Suficiencia Profesional

<p>This paper presents an analysis on Due Diligence process as a tool to reduce the Mergers and Acquisition (M&A) risk of failure which is used by the acquirer to gather quantitative but also qualitative information about the target in the pre-merger deal, before to sign the agreement of the deal.</p><p>However, the process is sometimes unknown or underestimated since the executives sometimes want the deal to be closed as soon as possible, and neglect some critical factors which can be important to get a true vision of the target and therefore increase the chance of</p><p>success of the deal in future. In the view of the enormous economic significance in M&A transactions numbers and volume, it is alarming that more of half of all transactions do not lead to the desired objectives. To investigate in this problem, some studies have emphasized Due Diligence impact to increase M&A chance of success.</p><p>Indeed, Due diligence is viewed as the only way to find out as much information as possible on the target company. It is a way to conduct a comprehensive investigation into this</p><p>potential target.</p><p>In this thesis, we will focus on Financial Due Diligence which is an unavoidable way to evaluate the target to allow getting financial information, but show its limits.</p><p>That is the reason why, we will highlight the role of the Strategic Due Diligence in this paper, which fulfill the FDD limits since it allows the bidder to thinks strategically as each deal is unique in what its value drivers are. Finally, in this paper we concluded that the SDD is the way companies should perform the DD to increase the M&A chance of success since each deal is unique in what its value drivers are and that is what SDD is all about.</p><p>To support our paper, we have addressed two interviews with 2 financial analysts who work in audit companies located in Stockholm to gather their points of view on the subject.</p><p>Moreover, both of our case studies on BNP Paribas and HP provide illustrative example on how financial and strategic Diligence can be conduct.</p>

<p> Vid värdering av företag använder den professionella värderaren sig av olika värderingsmetoder för att fastställa ett värde på säljarens företag. Det är inte helt lätt att göra en bedömning då det kan variera hur mycket information som finns att grunda sin värdering på. Det kan även variera vilken metod som används beroende på vad förslags företag som skall värderas. Det går heller inte att få fram ett exakt värde utan det blir oftast ett intervallvärde som använd.Författarna kom fram till att en professionell företagsvärderare använder sig av två till tre olika värderingsmetoder vid värdering av onoterade företag. Det som avgör vilken metod som används är bland annat syftet med värderingen samt hur mycket information som erhålls av säljaren. Även köpare och säljare har undersökningsplikt respektive informationsplikt. Om detta sker ömsesidigt av båda sidor kommer förvärvet gå mycket lättare</p>

Background: Businesses are traditionally valued with the so called Discounted Cash Flow-model. When valuing newly-started businesses, surrounded by high uncertainty, and whose capital mostly consists of unrealized business opportunities, the Discounted Cash Flow-model needs to be complemented if the total value of the business is to be captured. A valuation with the help of real options is capable of valuing these unrealized opportunities, which often exist in newly-started businesses. The unrealized opportunities are to be found in the business plan of the business, why this needs to be valued to capture the total value of a newly-started business. Purpose: To demonstrate what the use of real options can result in when valuing businesses. Realization: The fulfillment of the purpose was achieved by gathering information from a case company. Thereafter the case company was valued by putting the gathered information and made assumptions into suitable theoretical valuation models. Finally, an evaluation of the result was made. Findings: A valuation model, which includes real options can give a higher value on the business, but to beable to use real options one need to undertake some assumptions. These make the real option value uncertain to some extent. Real options can however function as a strategic tool. Firstly, the estimated option values can serve as indicators as to which decision to undertake within the business. Secondly, using real options can change the business management’s way to look at what creates value.

Vid värdering av företag använder den professionella värderaren sig av olika värderingsmetoder för att fastställa ett värde på säljarens företag. Det är inte helt lätt att göra en bedömning då det kan variera hur mycket information som finns att grunda sin värdering på. Det kan även variera vilken metod som används beroende på vad förslags företag som skall värderas. Det går heller inte att få fram ett exakt värde utan det blir oftast ett intervallvärde som använd.Författarna kom fram till att en professionell företagsvärderare använder sig av två till tre olika värderingsmetoder vid värdering av onoterade företag. Det som avgör vilken metod som används är bland annat syftet med värderingen samt hur mycket information som erhålls av säljaren. Även köpare och säljare har undersökningsplikt respektive informationsplikt. Om detta sker ömsesidigt av båda sidor kommer förvärvet gå mycket lättare

This paper presents an analysis on Due Diligence process as a tool to reduce the Mergers and Acquisition (M&amp;A) risk of failure which is used by the acquirer to gather quantitative but also qualitative information about the target in the pre-merger deal, before to sign the agreement of the deal. However, the process is sometimes unknown or underestimated since the executives sometimes want the deal to be closed as soon as possible, and neglect some critical factors which can be important to get a true vision of the target and therefore increase the chance of success of the deal in future. In the view of the enormous economic significance in M&amp;A transactions numbers and volume, it is alarming that more of half of all transactions do not lead to the desired objectives. To investigate in this problem, some studies have emphasized Due Diligence impact to increase M&amp;A chance of success. Indeed, Due diligence is viewed as the only way to find out as much information as possible on the target company. It is a way to conduct a comprehensive investigation into this potential target. In this thesis, we will focus on Financial Due Diligence which is an unavoidable way to evaluate the target to allow getting financial information, but show its limits. That is the reason why, we will highlight the role of the Strategic Due Diligence in this paper, which fulfill the FDD limits since it allows the bidder to thinks strategically as each deal is unique in what its value drivers are. Finally, in this paper we concluded that the SDD is the way companies should perform the DD to increase the M&amp;A chance of success since each deal is unique in what its value drivers are and that is what SDD is all about. To support our paper, we have addressed two interviews with 2 financial analysts who work in audit companies located in Stockholm to gather their points of view on the subject. Moreover, both of our case studies on BNP Paribas and HP provide illustrative example on how financial and strategic Diligence can be conduct.

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