Level III candidates, and CFA Chartered holders, Would you please explain how to value a joint venture (the methodology/mechanics behind it). Using a typical JV structure (i’m not sure of one might be). I would really appreciate it. Thank you.
multiply your birthday by three and take the square root.
Pick a number out of a hat.
roll a joint and call it a day
what a ridiculous question…you’ve been watching that scene from dark knight too many times
This valuation method works only for valuing chinese joint ventures. you go up to the partners, ask them how much cash they want for their joint venture. They will give you a number. You take that number and divide it by 2, that is ur intrinsic value.
value the indiviual companis and add them , do not double count
passme Wrote: ------------------------------------------------------- > This valuation method works only for valuing > chinese joint ventures. > > you go up to the partners, ask them how much cash > they want for their joint venture. They will give > you a number. You take that number and divide it > by 2, that is ur intrinsic value. ^ applies to everything from buying a fake rolex to a private equity deal.
builders Wrote: ------------------------------------------------------- > what a ridiculous question…you’ve been watching > that scene from dark knight too many times Care to explain the scene?
faraz70s Wrote: ------------------------------------------------------- > value the indiviual companis and add them , do not > double count Faraz70s - Would you please elaborate on this? According to some, you need to know the structure. Let’s say I put 90% cash and you put 10% sweat equity. How would we go about valuing the business if we believe it to be cash flow positive in one year? Again, I’m not familiar with this topic. Thanks in advance.