...Leadership in Valuation – Human as Intangible Assets 1086 hari lagi kita akan sampai di penghujung tahun 2015 dengan delapan (8) target MDG (Millenium Development Goals) yang dicanangkan PBB. Dalam kurun waktu 2.82 tahun ke depan seluruh dunia bersepakat dan bertekad untuk mengentaskan kemiskinan dan kelaparan, seluruh manusia mendapatkan pendidikan dasar, terlaksananya kesamaan gender, penurunan kematian anak-anak, peningkatan kesehatan Ibu yang baru melahirkan, memenangkan pertarungan terhadap HIV / AIDS, malaria, dan penyakit lainnya, Sustainabiliti Lingkungan, dan pengembangan kerjasama pengembangan dunia. BANK Ki MOON, SEKJEN PBB mengatakan “ Antara Sekarang dan tahun 2015, kita harus meyakinkan bahwa KITA MEMEGANG JANJI YANG KITA BUAT. Konsekuensi dari TIDAK memegang janji adalah KEMATIAN, PENYAKIT, KESUSAHAN YANG TIDAK PERLU, KEHILANGAN KESEMPATAN BERJTUA-JUTA MANUSIA”. Waktunya singkat: hanya 2.82 tahun lagi. Diperlukan KOMITMEN Para LEADER/PEMIMPIN agar Target ini tercapai…. Bagaimana dengan Indonesia? Angka 0,617 - HDI (Human Development Index) Indonesia, berada di bawah Afrika Selatasn (0,619), bahkan Uzbekistan (0,641) BANYAK SEKALI yang masih harus dilakukan ,…Apakah ada harapan Indonesia mencapai TARGET atau bahkan memenangkan Momentum GLOBAL???? Riset para Pakar mencengangkan dan memberikan harapan besar bagi Indonesia: Goldman Sachs melihat INDONESIA menjadi 1 dari 10 Ekonomi terbesar di dunia di tahun 2050, “Morgan Stanley Guru” – Ruchir Sharma GURU mendukung...
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...Valuation Valuation is the process and procedures used to determine the current worth of a company. Valuation is used in deciding if a company is worth investing in , what price you should pay when buying a company and even financial and dividend choices when running a company . Some elements of a valuation are Economic conditions, financial analysis, and financial statements. When a financial analysts need to value a business, they often start by identifying a sample of similar firms. (Brealey, Myers, & Marcus, 2012). They then examine how much investors in these companies are prepared to pay for each dollar of assets or earnings. (Brealey, Myers, & Marcus, 2012). Valuation determines a company’s value by using internal and external factors whereas when determining a company’s value and using financial income statement it uses internal factors only. Valuation also is a company’s market value and income statement is the book value. The definition of a stakeholder is a person, group, organization, or system that affects or can be affected by an organization's actions. The main stakeholders of a company are the employees, suppliers, investors, and customers. The Executives major goal is to create the most value for all stakeholders. This is a difficult goal. Executives know that long term value is what is best for their stakeholders especially with the economy the way it is today. However, corporate leaders are under great pressure...
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...it has been practiced as a specialty by financiers accustomed to balancing high risks for quick rewards, acquiring distressed companies has not been widely viewed as a corporate strategic opportunity. Recently, however, distressed M&A has become more common: A B as of April of 2009, there were 60 distressed M&A deals for the year including Valero Energy Corporation’s purchase of VeraSun Energy Corporation’s assets in bankruptcy; in 2008, there were 220 distressed deals; and in 2007, there were 134.[2] B B When assessing distressed M&A opportunities, corporate strategists should leverage their industry knowledge and expertise to search for hidden value, and also to select qualified industry experts to validate strategic and valuation assumptions. The interesting bankruptcy of Marvel Entertainment Group, Inc. (Marvel) demonstrates the kind of hidden value-based opportunities that are sometimes found in distressed M&A. The Marvel bankruptcy also answers a number of distressed M&A questions such as: B How does a firm with a great performance record like Marvel become a distressed investment? (Marvel was acquired in 1989 for $82.5...
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...created a valuation of the worth of the company. The projections we have created are based on a possible expansion that Mohotel’s new leadership has proposed to improve the efficiency of their operations. These projections are looking forward and based on financial statements dated 12/31/2014. Based on our analysis of Mohotel through the year 2021, we have found that a price range of $2,400,000,000 to $3,700,000,000 would be reasonable. Referring to our base valuation in which we valued Mohotel based on the idea that sales would increase by 5%,9%,9%,10%,8%,5%, and 3% respectively over the next seven years and eventually settle on a 2% growth rate due to the maturity of the industry, we found that the present value of the company would be about $2,776,000,000. This includes an expected reduction of operating costs of 1.5% through reductions in cost of goods sold and S,G, and A. Mohotel management also provided us with information regarding their planned reduction of investments in working capital through increased inventory and receivable turns of 3% and sales of prepaid rooms and gift card, reducing operating current liabilities by 5% of sales. The company also expects a change in how depreciation is calculated to 6.5% of the beginning of the year net PPE. The depreciation calculations are show on our base valuation in Table 2. In developing reasonable prices for the purchase of Mohotel we considered a few alternate scenarios for while we created alternate valuations. We first...
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...Cracking the Growth Code in IT-BPO Mergers As the market matures, consolidation can be the key to growth. Most IT-BPO companies in India have a focused M&A strategy to build growth momentum. But what will it take for these strategies to pay off? Cracking the Growth Code in IT-BPO Mergers 1 India has been the world’s dominant destination for information technology (IT) and business process outsourcing (BPO) services. However, as the market matures the industry has experienced a slowdown in growth, pushing IT-BPO providers toward focused M&A strategies to build and sustain growth momentum. Growth through M&A is now a core strategy influenced by the need to: • Fill gaps in service portfolios or geographic presence, to meet client demands and compete with the global majors; examples include Infosys’ acquisition of Lodestone to tap its European customer base, Wipro’s acquisition of Opus CMC to tap into its capabilities in high-end mortgage BPO, and Genpact’s acquisition of Triumph Engineering to bolster engineering capabilities • Manage cash reserves more effectively to meet shareholders’ expectations • Capture opportunities from client divestitures of services assets; examples include Cognizant’s acquisition of ING’s and CoreLogic’s captives, TCS’ and Wipro’s acquisition of Citigroup’s captives, and Tech Mahindra’s acquisition of Hutch BPO Done well, M&A strategies can help Indian players tap into $2 billion to $4 billion in revenues each year. Yet, about 70 percent of...
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...profit-seeking companies and nonprofit organizations. Indeed, creating superior customer value is a necessary condition for a company securing a niche in a competitive environment, not to mention a leadership position in the market (Day 1990). According to Porter (1980), a company can follow two generic routes to compete in a market: differentiation and low-cost. Day (1990) maintains that both approaches have the same objectiveC to create superior customer value, because "regardless of which of these routes is emphasized, the effort will fail unless significant customer value is created" (Day 1990, p. 163). Day (1990) addresses the issues in analyzing customer value and proposes that it can be expressed in a "value equation": "Customer's Perceived Benefits-Customer's Perceived Costs=Perceived Customer Value" (p. 142). Although Day's approach to customer value is basically sound, some details regarding consumer customers remain unclear. For example, the process by which consumers perceive product benefits is nebulous: Day particularly addresses product valuation by industrial customers in detail, but this is only in principle a part of a much more complex process of product valuation by consumers. Hence a theoretical framework which underlies the consumers' overall product valuation is still missing in the literature. Such a framework should address the issues of how consumers perceive the benefits and costs of products, as well as what possible benefits and costs consumers may...
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...community (class, workshop, or other organized group of learners), the institution, or the educational system as a whole (also known as granularity).[citation needed] The final purpose of assessment practices in education depends on the theoretical framework of the practitioners and researchers, their assumptions and beliefs about the nature of human mind, the origin of knowledge, and the process of learning. Alternate meanings According to the Merriam-Webster online dictionary the word assessment comes from the root word assess which is defined as: 1. to determine the rate or amount of (as a tax) 2. to impose (as a tax) according to an established rate b: to subject to a tax, charge, or levy 3. to make an official valuation of (property) for the purposes of taxation 4. to determine the importance, size, or value of (assess a problem) 5. to charge (a player or team) with a foul or penalty to evaluate something or someone Assessment in education is best described as an action "to determine the importance, size, or value of."[1] Types The term assessment is generally used to refer to all activities teachers use to help students learn and to gauge student progress.[2] Though the notion of assessment is generally more complicated than the following categories suggest, assessment is often divided for the sake of convenience using the following distinctions: Educational assessment is the process of documenting, usually in measurable terms...
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...promoted within a year and was involved in many projects in different industries. The key projects includes; Capital restructuring: Leading Telecom Company in the Middle East Assists the client in setting the optimal capital structure that improvers the business. Researched listed telecom companies to benchmark the existing capital structure of the client. Made the presentations pack which was used at the board meeting for approval of the new capital structure. Valuation: Bottled water Company Valuation assignment based on discounted cash flow methodology. Conducted secondary market research to assist in deriving financial forecast assumptions. Assisted in financial modeling and in preparing the valuation memorandum. Feasibility study and Fund raising: Plastic Packaging Project Work on preparing information package for Saudi Industrial Fund. Help generating the financial model assumption. May 2000 • • • • • • • • Credit collection: Cleopatra Company (Summer Internship), Riyadh TRAINING & COURSES • • • • • • • Valuation and financial modeling, Shrjah ,UAE Essential financial modeling in Dubai, UAE Introductory classes in using Bloomberg terminal Short courses at the university include: Skills of Time...
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...Madison Street Capital Company Overview Madison Street Capital: a worldwide company for investment and banking that is committed to excellence, leadership, integrity and service in delivering corporate economic advisory services, acquisition and merger expertise valuation services to privately and publicly held businesses. These are the services that position the clients of Madison Street Capital to have success in the universal market place.in taking up every new project, the client’s goals and objectives become Madison’s objectives too. These objectives range from economic advisory and successful investment raises to M&A transaction to transfer of ownership. Madison Street Capital. Critically views the emerging markets as the main and core components that drive the international growth of the clients. This company continues to focus on significant assets that are on the market for their clients. Over the years, the firm has earned the trust of their clients internationally through their unwavering commitment to the levels of expert values. As the company continues to provide financial opinions to major organizations, it has also focused expertise in trying to partner with middle-market companies in order to successfully traverse through complex dealings and achieve the best and desirable possible outcome. The company has financially experienced professionals who are always at the table with their clients and decisions are made as options emerge thereby providing refined...
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...Oil Industry OverviewDrivers of Merger | | 3 | Strategic Fit | | 4 | Valuation of Merger | | 5 | Valuation of Synergies | | 6 | Deal Structuring | | 7 | Effect on shareholders | | 8 | Factors leading to merger’s success | | 9 | Anti-Trust Concerns | | 10 | References | | 11 | Appendix | | Executive Summary The Exxon-Mobil merger of 1998 makes for an interesting Mergers & acquisitions discussion as one of the largest mergers in the history of Oil and Gas industry. The merger took place as the industry was undergoing a phase of rapid consolidation. Operational efficiency, oil reserves in emerging economies, constantly dipping oil prices and challenges in downstream operations were the defining factors of the landscape and drivers behind the merger. The success of the merger lies in the significant synergies derived , whether it be complementary asset locations, different competencies and stronghold over different geographical locations. The near term operating synergy was a whopping $2.8 billion. Risks however existed in terms of meeting anti-trust and regulatory concerns, retention of personnel and cultural differences. Exxon-Mobil post the merger would gain an exorbitant market share in key locations which would have a bearing on fair competition. This led to FTC handing out strict compliance requirements. However, with intense efforts by the leadership at these two companies, the merger has gone down in history as one of the very...
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...Standalone, Synergy and Premium Valuations II E. Integration Plan II Part 1 - The Rational of the Acquisition 1 1. Pfizer's Strategy 1 1.1. Pfizer Growth Strategy 2 2. Pfizer's Road Map 4 2.1. Pfizer's Acquisitions Rational 4 3. The strategy behind the acquisition 5 3.1. Acquisition Motives 5 3.2. M&A vs. Alliance 5 4. Target Identification 7 4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12 6.1. Market Value 12 6.2. Trading and Transaction Multiples Valuations 12 6.3. Discounted Cash Flow (DCF) Valuation 14 6.3.1. DCF Methodology and Assumptions 14 6.3.2. Summary of the Standalone and the Synergy DCF Valuation 15 6.4. Premium 16 6.5. Walk-away Price, Net Value Creation and Financial Feasibility 17 Part 2 - The Integration Plan 18 Bibliography 21 APPENDIXES 22 Appendix 1 - Pfizer's Executive Leadership Team 23 Appendix 2 - Pfizer's Organizational Structure Scheme 24 Appendix 3 - Five Forces Analysis for the Pharmaceutical Industry 25 Appendix 4 - Pfizer's PEST Analysis 27 Appendix 5 - Level of Competition Between the Acquirers & the Uniqueness of the Acquired Company 31 Appendix 6 - Acquisition Motives 33 Appendix 7 - Protalix Management and Board of Directors 35 Appendix 8 - Technology Adoption Lifecycle 36 Appendix 9 - Pfizer's SWOT Analysis 36 Appendix 10 - Protalix's Financials 38 Appendix 11 - About the Valuation Methods 40 Appendix 12...
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...All hail the new king ! As FaceBook’s IPO unfolds over the course of 2012, we will learn more and more about Mark Zuckerberg as the new hailed “King” of the techies. Is it all about the cash? It would seem Zuckerberg has the world at his feet. His empire includes over 800million Facebook users and based on a recent valuation he will be worth over $28 billion at the age of 27 (The Guardian). Money can not be his only motivator, it has been reported that at the age of 22 he turned down several offers for Facebook, famously $1billion from Yahoo in 2006. What leadership traits does Zuckerberg have that drives him to pursue his calling “…to give people the power to share and make the world more open and connected…”? A divine right? Zuckerberg is focused on his ambition of making the world social or “not changing human nature but enabling it...” as he labels it. Ancient leadership theories indicate that charismatic leaders were “chosen ones” with spiritual powers and a “cult like” following. In the early days of Facebook, Zuckerberg had the adulation of “followers” who were willing to sacrifice salary for shares. Even normal folk outside his “techie” circle, such as David Choe, a graffiti artist, who chose stock options as payment for decorating Facebook’s offices. He is estimated to walk away with $200m after the IPO. Inventor or imitator? Evidence suggests that Zuckerberg simply steals ideas. Take the name “Facebook”, according to reports the original idea is thought...
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...If we feel as though the investment does not have the upside of 10% or higher than we simply are not interested. If the concept is not proven, and if they don’t have more than $100,000 a year in sales, we will not invest in the business venture. Location Generally near our home base. We need to be able to visit the business venture from time to time. So location is a key to the investment Management Team At Joe Johnson Angel Investment, LLC, we are looking for quality management teams that have a high quality track records working with entrepreneurs. We need to see that that the leadership qualities and performance in the companies that we invest in, whether they be in specific industry or other entrepreneurship teams, have high standards and great accounts. We will consider investing in management teams with limited experience but the teams must be able to display great leadership qualities. We also want to see that a team has passion and heart whenever they bring forth a business idea. There needs to be a way to prove that the team can stimulate confidence in the future stake holders. They also need to be able to inspire future employees and the customers that they are going to be serving, as well as the investors that are going to come on board. An first and foremost the team needs to be open and at ease with the input provided by the angle investors Market Opportunity We are a company that invests in a wide range of business opportunities. We often have found...
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...this largest acquisition of its history. With this acquisition, Timken is increasing the size of company by almost 50 percent. And, Timken will continue to concentrate on what it do best by buying a company in an industry, where it has a leadership position built on decades of expertise. Timken expects to expand its worldwide business base with new products and services as both companies have only 5 percent overlap in their product offerings. Timken will also be able to broaden its technology and engineering capabilities to enable it to deliver more value to customers around the globe; the two companies’ customer list overlaps by 80 percent. Thus it was expected that the combined companies would be able to create more value for customers with a more complete product line and, eventually more effective new-product development. Timken will move quickly to integrate Torrington into its global automotive and industrial business structures and expects to achieve estimated annualized savings of $80 million by the end of 2007. These savings are expected to come from economies of scale; consolidating purchasing activities and distribution channels, combining operations and eliminating redundancies within the organization. My first stand –alone valuation of Torrington is based on the DCF analysis method. First of all, Torrington’s parent company (Ingersoll-Rand)’s WACC needs to be calculated. A tax rate of 39% is assumed based on its historical information and leverage ratios of 37.6%...
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...Works within its Midwestern Steel Division was hit by the decline in the business in the US steel industry despite its good performance in the past. Consequently, it downsized and incurred significant losses in most of the 1980s. This entity produces two primary products including grinding media and carbon wire rod, one being recognized in the industry for its durability while the later being non profitable and only covering some of its fixed costs through volume. 2.0 What’s wrong with the old system? (a) Inconsistency with organization’s strategy The Objective of Armco Inc. is maximizing profits and sustaining its position among the leaders in the US manufacturing steel industry. To achieve this objective, Armco has adopted a cost leadership strategy with a broad appeal and has managed to grow bigger through joint ventures and expansion of its product lines in implementing its strategy. However, the strategy adopted by the Kansas City Works is based on differentiation due to its cost disadvantages such as union labor costs and inefficient plant infrastructure.Union labor costs in Kansas City were higher than those of some of its nonunion competitors, particularly those located in the Southeastern U.S. and non-U.S. locations. The Works had an inefficient plant infrastructure because the plant was designed to accommodate five times as many employees as were currently working there. (b) Subjective performance evaluation Performance evaluation was made by immediate superior...
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