Determining strategic value
Article Abstract:
A method for determining the proper value of a resource targeted for acquisition, such as a plant or an entire company, is developed that calculates 'strategic values' based upon financial forecasts of the company without the acquisition, financial forecasts of the acquisition target, and combined financial forecasts of the acquiring company and the acquisition candidate, all of which should be computed using differing purchase prices. These forecasts should assist management in determining a strategic value for the acquisition that accounts for returns on assets, returns on investments, discounted cash flow analyses, and other familiar financial benchmarks, under various prices paid for the resource. Management may then focus on a rate-of-return objective and relate this to the reasonableness of the targeted acquisition's asking price, or market value.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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Using economic data in your strategic plan
Article Abstract:
A comprehensive strategic plan can be formulated by incorporating the company's current and future environment. Therefore, economic, demographic and business-environment data should be included in the strategic plan to accurately forecast the future of the company. Organizations that do this are able to establish revenue targets, anticipate cost changes, set sales forecasts and choose markets for new products or company expansion. There are different sources that can provide the needed data, including data vendors, government agencies consulting groups and university research organizations. In selecting the appropriate sources of data, companies should look at their cost, reliability, reputation and currency. Examples of common planning questions are provided, along with the economic data that can answer these questions.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1997
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10 steps to winning approval of a new reporting system
Article Abstract:
The experience of Pacific Resources Inc (Honolulu, HI) in planning and implementing a new financial reporting system is described. Steps that led to success for Pacific Resources included: getting the support of its information services section; identifying a team of individuals for the project; defining limitations of the existing system; defining project scope; defining goals, requirements, and benefits; assessing risks; defining costs; determining options; and making recommendations. Pacific Resources concluded that the benefits of establishing a new general ledger system outweighed the expenses and approved the project.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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