BUS 082 Lecture Notes - Lecture 3: Control Premium, Comparables

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

Investment management provides investment and wealth advisory services to help clients preserve and grow their financial assets. Clients include institutions and high net -worth individuals, as well as retail investors who primarily access our products through a network of third party distributors around the world. Benchmark against which a banker can establish valuation for a private company or analyse the value of public company at a given point in time. Premise that similar companies provide highly relevant reference point for valuing a target company. Valuation parameters can be established for the target by determining relative positioning among peer companies. Peer companies are benchmarked against each another and the target based on various financial statistics and ratios. Utilizes measure of value in numerator and operating metric in denominator. Designed to reflect current valuation based on prevailing market conditions and sentiment. However, the comparable companies standalone does not reflect: The value of synergies that can be created in an acquisition.