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Assalam walaikum. Peace be upon you. Sir, I have noticed you haven’t uploaded any lectures on Business Valuation and it is unlikely you will do so before December. Meanwhile, can you please suggest a good source from where I can study Business Valuation for P4 exams, from scratch? Thank you 🙂
I suggest that you start by reviewing the course notes and lectures on business valuations in Paper F9.
There is really not much extra for P4 and the extra techniques are covered in other chapters of P4.DEAR SIR,
UNDER JUNE 2012 Q1 WHILE CALCULATING GAIN ON SHARES OF EACH COMPANY THROUGH SHARE FOR SHARE EXCHANGE COMBINED COMPANY EARNINGS WERE PAT OF BOTH COMPANIES PLUS SYNERGY BENEFITS.BUT UNDER A SIMILAR QUESTION IN DEC 2012 Q3 A DIFFERENT APPROACH INVOLVING EQUITY VALUES FOR EACH COMPANY PLUS SYNERGY BENEFITS WAS TAKEN.CAN BOTH THE METHODS BE RELEVANT BECAUSE UNDER Q1 OF JUNE 2012 EQUITY VALUES COULD ALSO HAVE BEEN CALCULATED WITH SHARE PRICE BEING AVAILABLE FOR EACH COMPANY AND VICE VERSA APPROACH TAKEN FOR Q3 OF DEC 2012Although you would get some credit for either way in either question, in June 2012 the whole question revolved around FCFE which is why that approach has been taken. Whereas in December 2012 the fact that you are given PE ratios and that the synergy is expressed as a % of the share value implies basing it on equity values.
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