tailieunhanh - Lecture Fundamentals of corporate finance (3/e): Chapter 18 - Robert Parrino, David S. Kidwell, Thomas Bates

Chapter 18, business formation, growth, and valuation. The basic objective in cash management is to keep the investment in cash as low as possible while still keeping the firm operating efficiently and effectively. This goal usually reduces to the dictum “Collect early and pay late”. Accordingly, this chapter forcus discuss ways of accelerating collections and managing disbursements. | Fundamentals of Corporate Finance, 3/e Robert Parrino, . David S. Kidwell, . Thomas W. Bates, . 1 Copyright© 2015 John Wiley & Sons, Inc. Chapter 18: Business Formation, Growth, and Valuation Learning Objectives Explain why the choice of organizational form is important, and describe two financial considerations that are especially important in starting a business Describe the key components of a business plan and explain what a business plan is used for Explain the three general approaches to valuation and value a business using common business valuation approaches Copyright© 2015 John Wiley & Sons, Inc. 3 Learning Objectives Explain how valuations can differ between public and private companies and between young and mature companies, and discuss the importance of control and key person considerations in valuation Copyright© 2015 John Wiley & Sons, Inc. 4 Starting a Business Startup Considerations Individuals go into business for a variety of reasons Irrespective of their motivation, the first decision they must make is whether they want to found a business or acquire an existing business Starting a business is inherently more risky than buying and growing a business that someone else has already established Start-up Considerations The founder of a company must start from scratch and make several decisions, including: Choosing the product(s) to sell Choosing the markets to sell them in Choosing the best strategy for selling them Raising the money needed to develop the product(s) Acquiring the necessary assets Hiring the right people Making the Decision to Proceed Businesses fail for many reasons, including: Lack of acceptance of the products by customers Poor strategy Poor management skills to properly execute a good strategy Underestimating how much money it will take to get their businesses up and running Making the Decision to Proceed Chances of success in a business can improve if one Doesn’t jump into a business without careful thought Doesn’t . | Fundamentals of Corporate Finance, 3/e Robert Parrino, . David S. Kidwell, . Thomas W. Bates, . 1 Copyright© 2015 John Wiley & Sons, Inc. Chapter 18: Business Formation, Growth, and Valuation Learning Objectives Explain why the choice of organizational form is important, and describe two financial considerations that are especially important in starting a business Describe the key components of a business plan and explain what a business plan is used for Explain the three general approaches to valuation and value a business using common business valuation approaches Copyright© 2015 John Wiley & Sons, Inc. 3 Learning Objectives Explain how valuations can differ between public and private companies and between young and mature companies, and discuss the importance of control and key person considerations in valuation Copyright© 2015 John Wiley & Sons, Inc. 4 Starting a Business Startup Considerations Individuals go into business for a variety of reasons Irrespective of .