Enterprise value

An enterprise value of a product or company is probably the most common benchmark for valuation in that it represents the sum of the values of an asset, for a product these might be sales, IP rights, manufacturing capacity, inventory and trademarks. Each of these can be assigned a nominal value and be adjusted... 

The way to estimate strategic value in the financial sense, in other words the premium paid beyond the enterprise value, is probably the valuation issue which is least amenable to any form of method or systematic analysis. Although previous transactions from external benchmarking or from the company s own experience may give some kind of lead, even if there is true comparability between the benchmark and the valuation subject, differences in market conditions from one day to the next will often have major influences on the price of an asset. The acquisition of Hexal by Novartis Sandoz generic division in 2006 was widely criticized at the time as being too costly, yet immediately thereafter Teva bought Ivax to re-establish their market position... 

Compound annual growth rate Operating enterprise value /invested eapilal... 

Whether companies go for the radical or the smooth approach, empirical evidence shows that asset-leveraging strategies wiU pay off if their aim is to focus the portfolio. Focused players consistently show better performance over longer periods than non-focused players do, in terms of both return on sales and enterprise value (Fig. 3.5). 

This general relationship, asset class yield minus cost of financing, is what defines the expected equity value (or enterprise value) of CCDO I upon its launch. This relationship is dynamic given that value of the port-... 

Murman, E., Allen, T., Bozdogan, K., et al. 2002. Lean Enterprise Value Lnsights from MTT s Lean Aerospace Lnitiative. Palgrave/Macmillan, New York. 

As information and communication systems such as supply chain management systems sire human-machine-task-environment-systems e.g. Alter, 2002 Heinrich, 1993), the evaluation procedure has to take not only the system itself, but also the system environment (enterprise, value chain network) into account. Especially the execution of processes between enterprises comprises the interaction of humans with a process system (machine) directed towards the process taskin a given scenario (environment). Therefore, the evaluation should consider the different objectives of the different target groups of supply chain systems e.g. user as process owner, company s strategic goals, IT maintenance, etc.). Reference for improvement are the processes and situation as analyzed in the as-is analysis. 

In the strategy presented in this chapter the method of discounted free cash flow (DFCF) method is applied to assess the decisions undertaken by a Arm. The DFCF method calculates the enterprise value by determining the present value of its future cash flows and discounting them taking into account the appropriate capital cost during the planning horizon defined (Grant 2003). 

Conversely, the absence of such a plan can detract from enterprise value. Consider for a moment, the impact on a company s market value from indusUial incidents. A 2009 research study titled How Does the Stock Market Respond to Chemical Disasters by Gunther Capelle-Blancardy and Marie-Aude Lagunaz, examined 64 explosions in chemical plants and refineries worldwide between 1990 and 2005 and found that, on average, petrochemical firms experience a drop in market value of... 

Alongside the mentioned conceptual approaches linking SCM with value drivers, contributions can be found that statistically establish an SCI s impact on enterprise value (e.g., Ellram Liu, 2002 D Avanzo et al, 2003 Timme Williams-Timme, 2000). They provide evidence of the correlation between SCM and financial business metrics, such as the EVA, and the stock market price. These studies address the identification of SCM value drivers and an intensity quantification of their impacts. Thereby, they rely in part on the statistical interpretation of listed companies historical data. With this, they show a correlation between SCM and enterprise value in the form of particular value drivers percentaged growth rates. However, a formal analytic connection in the form of mathematical links is not achieved (Ballou, 2006 23). 

Although the manufacture and sale of adhesives is a worldwide enterprise, the adhesives business can be characterized as a fragmented industry. The 1987 Census of Manufacturers obtained reports from 712 companies in the United States, each of which considers itself to be in the adhesives or sealants business (13) only 275 of these companies had more than 20 employees. The total value of material shipped by these companies approached 4.7 biUion... 

Decision Theory Formalism in the Behavioral Sciences.46—A formal method for examining decisions is developed through the use of a utility matrix [ tj] similar to the payoff matrix of game theory. In this matrix the rows correspond to the various possible acts of a decision-maker (e.g., to invest money in enterprises AltA2, -, Am) and the columns to various states, i.e., circumstances (e.g., possible levels of development of each enterprise) under which the acts are performed. The element y gives the utility (return or value) for using act At when state sf prevails. 

The Hydrocarbon Processing Industry (HPI), has traditionally been reluctant to invest capital where an immediate direct return on the investment to the company is not obvious, as would any business enterprise. Additionally financial fire losses in the petroleum and related industries were relatively small up to about the 1950 s. This was due to the small size of facilities and the relatively low value of oil and gas to the volume of production. Until 1950, a fire or explosion loss of more than 5 million U. S. Dollars had not occurred in the refining industry in the USA. Also in this period, the capital intensive offshore oil exploration and production industry were only just beginning. The use of gas was also limited early in the century. Consequentially its value was also very low. Typically production gas was immediately flared or the well was capped and considered as an uneconomical reservoir. Since gas development was limited, large vapor explosions were relatively rare and catastrophic destruction from petroleum incidents was essentially unheard of. The outlays for petroleum industry safety features were traditionally the absolute minimum required by governmental regulations. The development of loss prevention philosophies and practices were therefore not effectively developed within the industry. 

To achieve better value for the money, and to squeeze waste out of the economy, Chinese industry will be made freer, and therefore, it is hoped, more productive. Yao Yilin, the new Chief planner (Vice Premier of the State Council and currently Chairman of the State Planning Commission), in a speech delivered on August 30, 1980 at the Fifth NPC, confirmed reports that experimental autonomy granted to selected factories during the past 18 months will be broadened to include all state enterprises. Factories are encouraged to adjust their output to market demands and purchase their necessary inputs in the open market—once state production and procurement targets are met. 

NPN43C9 was shown to give a rate acceleration for hydrolysis of [50] of approximately 1.5 X 105, and its values of Km and Fmax were approximately the same as those for its Fab fragment, whose RNA sequence was subsequently used in cloning and expression of Fabs in a bacteriophage A system (Huse et al., 1989). Such an enterprise is capable of giving a greatly... 

---