Today marks the beginning of week nine. After this week, we will have a two-week group project, and then we’re free from this class. Just because we’re getting closer to the end in no way means that the work gets easier. This week, we have to do our final individual project which investigates the fair market value of the company we work for. This project culminates with a 10-page written assignment.
Business Valuation has become an important corporate strategy lately. Business valuation principles also guide financial managers and security analysts in structuring mergers and acquisitions; discovering undervalued stocks; and pricing initial public stock offerings, etc. Venture capitalists also use these principles for evaluating new investment opportunities. We have to provide a brief discussion and evaluation of the various valuation methods for determining fair market value. We have to explain the reasons for selecting the specific method of valuation that I am going to use to estimate the fair market value of my company, and provide the sources and the techniques I use to obtain the data such as the average cost of capital, free cash flows, the rate of growth in earnings/cash flows of the company, the estimate of terminal value of the company, etc.
This is where it gets weird. In order to get the data, I have to get with some people on the financial side of our company and explain to them that I am in the middle of my MBA program and in order to accomplish this task in my Managerial Finance class, I will need for them to provide me with confidential and very strategic data. I’ve never done that before.
If they refuse to provide that, I have been instructed to request “ball park” numbers so that I can complete the assignment. While this might be a little weird, I think it will work out. My management supports my efforts to get this degree. The bad part is that I am on vacation this week and my requests and all collaboration will have to be done via e-mail.
This is once again an example of how Norwich uses real-world examples to get the point across. This is much better (in my opinion) than using a fictional corporation that might be presented in a textbook. But to be honest, I will feel the monkey being removed from my back when this class is over. I am not an expert in financial matters. This has been a very difficult class, to say the least.
Scott Davis is a manager for a large media and communications company in Austin, TX. He has worked there since June of 2001. Scott has an Associates degree in Information Systems and a Bachelors degree in Management from Kaplan University. In 2009, Scott will have earned his MBA from Norwich University. He loves fan mail and feedback from his readers. His hobbies include distance education issues, educational research, organizational leadership, training, and photography. Scott's blog is titled "Divide by Zero". He enjoys fielding questions from people who are interested in distance education. So if you have anything on your mind, please feel free to drop him a line from the contact page listed below. All inquiries will be answered as soon as possible.
Scott is also active on LinkedIn.
Anonymous comments are disabled
About WheelCipher
Scott is a manager for a large media, communications, and Internet company in Austin, Texas. He's been in that position since June 2001. He has experience in the high-technology industry in management, engineering, and support positions with Dell Computer Corporation, UUNET Technologies, Wayport and others.
Scott started his degree program in 2003, and had no prior college credit before jumping into the distance learning environment. He graduated in October 2007 having attained an A.A.S. in Information Technology and a B.S. in Management from Kaplan University.
He is now a MBA student at Norwich University
Scott maintains his own blog at ScottDavis.info where he talks about business, education, politics, technology and society.