Business Valuation Karen Grossman Tabak or Alma or Syllabus Review

Business Analysis & Valuation Importance Information Economics Framework

Course Methodology Discussion of Readings and Homework Assignments In-Class Case worked in Groups Discussion of Case Findings Graduate Presentation Case Final

Objective of Readings To prepare you for the in-class cases To prepare a format for business analysis and valuation

Framework Business Strategy Analysis Accounting Analysis Financial Analysis Prospect Analysis

Strategy Analysis Industry Analysis Competitive Strategy analysis Corporate Strategy Analysis

Competitive Advantage Cost Leadership Differentiation

Achieving & Sustaining Comp Adv. Key risk factors with chosen strategy & resources available Is Comp Adv Sustainable? Are there industry structural threats? Is structure of firm set to sustain Comp Adv.?

Industry Analysis – Existing Firms Industry growth Concentration Differentiation Switching costs Scale/learning economies Fixed-variable costs Excess capacity Exit Barriers

Industry Analysis – New Entrants Scale of economies First mover advantage Distribution access Relationships Legal Barriers

Industry Analysis - Substitute Products Relative price and performance Buyers’ willingness to switch

Industry Analysis Power of Buyers/Suppliers Switching costs Differentiation Importance of Product Number of Buyers/Suppliers Volume per Buyer/Supplier

Corporate Strategy Analysis What is the corporate structure What is the corporate culture Consequences of managing all business Do economies of scope or scale exist

Corporate Strategy Questions

Accounting Analysis Overview The Details The Resources The Regulations