ACCA P4 AFM Advance Financial Management

ACCAspace

Provided by
ACCA Research Institute



ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com

, P4 Chapter 23 Content



1 Introduction to business valuation



2 Cash based methods



3 Market based methods


4 Asset based methods


5 Intangible asset valuation methods



ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2

, P4 Chapter 23 Content



6 High growth start-ups


7 Problems of overvaluation




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3

, 1.Introduction to business valuation

 Risk in acquisitions and mergers
An acquisition may expose an company to risk. It is important to
distinguish between:
• business risk
This is the variability in the earnings of the company, which
results from the uncertainties in the business environmen. If the
merger or acquisition is with another company operating tin the
same businss area, the underlying business risk (measured by
the asset beta)of the acquirer will be unaffected.




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 4