Methods for Estimating the Growth in Company Value and Shareholder Value Resulting from Business Combinations

• Authors: Ewa Maćkowiak
• Languages of publication: EN

Abstracts

EN

The paper aims to present the measures which can be applied to estimate the company value creation and shareholder value creation resulting from a merger or an acquisition of a company. The selection of an appropriate method allows to determine whether the merger or acquisition has really contributed to an increase in the owners' wealth. Company value can be increased by creating added value or by maximizing earned profits and positive cash flow. The use of maximized profits and cash flow to build company value involves maximizing revenues and minimizing expenses. On the other hand, creating added value means building strong elements which will allow to generate and increase revenues and profits in the future. Consequently, added value causes that even an enterprise which generates little or no profit or cash flow may have a considerable market value for a potential investor or buyer

Keywords

EN

Enterprise value; Market value of enterprise; Shareholder Value (SHV); Value added

PL

Wartość dla akcjonariuszy; Wartość przedsiębiorstwa; Wartość dodana; Wartość rynkowa przedsiębiorstwa

• Publisher: Uniwersytet Ekonomiczny w Katowicach
• Journal: Studia Ekonomiczne
• Year: 2014
• Volume: 164
• Pages: 97-108

Contributors

author

Ewa Maćkowiak

References

• K. Machała: Zarządzanie finansami i wycena firmy. UNIMEX, Wrocław 2011, s. 18.
• E. Maćkowiak: Ekonomiczna wartość dodana. PWE, Warszawa 2009, s. 58.
• S. Jovonovic, Braguinsky: Bidder Discounts and Target Premia in Takeovers. "American Economic Review" 2004, 94 (1), s. 45-46.
• M. Lewandowski, J. Strysik: Zjawisko synergii w przypadku fuzji i przejęć przedsiębiorstw. W: M. Lewandowski et al.: Fuzje i przejęcia w Polsce na tle tendencji światowych. WIG-Press, Warszawa 2001, s. 223
• Z. Korzeb: Teoria kreowania wartości dla akcjonariuszy w procesach fuzji i przejęć w polskim sektorze bankowym. Difin, Warszawa 2010, s. 186.

Identifiers

ISSN

2083-8611