Multiple Valuation of non-Listed Enterprises From the Health Care Branch – Concept and Analysis

Seminararbeit , 2009 , 25 Seiten , Note: 1,1

BWL - Investition und Finanzierung

The valuation of companies is one of the key issues facing corporate finance applications today. In practical business, several methods of valuation compete with each other. Aside from the discounted cash flow method, the valuation of companies with multiples is one of the most common methods used (Lie & Lie, 2002, p. 44).
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The aim of this paper is, on the one hand, to give sound insight in multiple theory and, on the other hand, to value a privately held small- and medium-sized enterprise (SME) in the hospital sector using multiples.

Inhaltsverzeichnis

• Introduction
  • Problem Definition and Objectives
  • Course of the Investigation
• Conceptual Framework
  • Underlying Assumptions and Derivation of Multiples
  • Categorization of Multiples
  • The Approach to Multiple Valuation
• Entity Valuation of a Medium-Sized Health Care Company
  • The Target Company From the Health Care Branch
  • Key Steps of the Multiple Valuation
    • Assessment of Value Drivers
    • Identification of Comparable Companies
    • Calculation and Evaluation of Peer Group Multiples
    • Valuation of the Target
  • Critical Review of the Valuation
• Conclusion
• Appendixes
• List of Abbreviations
• List of Tables and Figures

Zielsetzung und Themenschwerpunkte

This practical report aims to provide a comprehensive understanding of multiple valuation theory and apply it to value a privately held Small- and Medium-sized Enterprise (SME) in the hospital sector. The report explores the underlying assumptions and derivation of multiples, categorizes common market-based multiples, and outlines the approach to multiple valuation. It then applies this framework to value a specific target company in the health care branch, considering key value drivers, identifying comparable companies, calculating peer group multiples, and ultimately determining the target's value. The report concludes with a critical review of the valuation process.

• Multiple Valuation Theory
• Valuation of Non-Listed Companies
• Health Care Industry Valuation
• Comparable Company Valuation (CCV)
• Application of Multiples in Practice

Zusammenfassung der Kapitel

The introduction sets the stage by defining the problem of valuing non-listed companies, particularly in the dynamic health care sector. It highlights the importance of multiple valuation as a common method and outlines the objectives of the report. The conceptual framework section delves into the theoretical underpinnings of multiples, exploring their assumptions, derivation, and categorization. It provides a foundation for understanding the methodology used in the subsequent valuation process.

The chapter on entity valuation focuses on the practical application of multiples to a specific medium-sized health care company. It outlines the key steps involved, including assessing value drivers, identifying comparable companies, calculating peer group multiples, and ultimately valuing the target. This section provides a detailed analysis of the valuation process, highlighting the challenges and considerations specific to the health care industry.

The conclusion summarizes the findings of the report, emphasizing the strengths and limitations of multiple valuation in the context of the target company. It provides insights into the practical implications of the valuation results and suggests areas for further research.

Schlüsselwörter

The keywords and focus themes of the text include multiple valuation, non-listed companies, health care industry, comparable company valuation (CCV), valuation methodology, value drivers, peer group analysis, and practical application. The report explores the theoretical foundations of multiples, their application in valuing non-listed companies, and the specific challenges of valuing companies in the health care sector. It provides a comprehensive overview of the multiple valuation process, including the identification of comparable companies, the calculation of peer group multiples, and the critical review of the valuation results.

• Hochschule: European Business School - Internationale Universität Schloß Reichartshausen Oestrich-Winkel
• Note: 1,1
• Autor: Kevin Rink (Autor:in)
• Erscheinungsjahr: 2009
• Seiten: 25
• Katalognummer: V147110
• ISBN (eBook): 9783640571307
• ISBN (Buch): 9783640571079
• Sprache: Englisch
• Schlagworte: Health Care, Multiples, Valuation, DCF, CCV, Unternehmensbewertung, Comparable Company, Discounted Cash Flow