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Hi all,
Im currently preparing my RAP,and had a query. After choosing the company i wanted to research about(say co. x) as well as the company that i was going to compare it with(say co. y), i found that my comparator company(co. y) owns shares(about 26%) of co. x..Will that affect my analysis in anyway?
I have already calculated all my ratios and have finished part 1 and part2 of my RAP,so this issue has been confusing me.
Thanks to anyone who can help me.Dear friend,
your ratios will be distorted using this arrangement ( this is a typical case of Parent & Associate company), please stay away from it. i advice you use different company though in the same industry as a comparator.
I did topic 8 it’s clear cut arranegment between 2 companies in the same industries.
do well to contact me should you required further advice (g_ayo@yahoo.com)
i wsih you sucess!
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