Cross Border Valuation Issue

CROSS-BORDER VALUATION ISSUES.

Ninfa Borth Altadonna   Jeff Fosler                             Susan Hua
Shawn Kennedy                 Brian Limurti                   Alex Santibanez

Valuation and Corporate Combinations
Finance 668.25
Sat., Dec. 4, 2010
Contents

I.       Executive Summary 3
II.     Summary of Key Terms & Concepts 3
III.     Discuss various Valuation Implications and Applicability to MNC’s & global capital markets 13
IV.     Discuss DCF Methods (Multiple analyses in US or Foreign comparables) 18
V.     Discuss a Short Example 23
VI.     Real World Company Case Study 1: 25
VII.   Real World Company Case Study 2: 27
VIII.   Conclusion 28

I.       Executive Summary

There are many important facets to assessing cross-border valuation issues in the context of mergers and acquisitions.   It is important that the investor gain a strong understanding of a companies’ culture, its management and its employees.   Additionally, there are nuances involved in managing assets, capabilities, and operational plans as well as in information reporting and sharing.   These are issues that are prevalent in evaluating any business, but particularly for any organization engaged in extensive operations or investments across national borders or located in foreign environments.   To help us gain a better understanding of the complexities involved in creating a successful global firm topical areas such as Political Risk, Foreign Currency and Accounting Principles to among others, this paper will discuss areas that apply to multinational corporations and the global capital market, including important and.   We will examine how companies can craft an attractive cross border investment strategy by taking into consideration the particular areas that are unique to the global business arena.   Additionally, we will compare differences between domestic and foreign Discounted Cash Flow (DCF), which will be reviewed with a further understanding on... [continues]

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