how is a company valued for an acquisition?
110628
Wow, that's a funny question. I was with a telecom company that recently sold out, 16 switches to one company and the rest to another.  Luckily I stayed with the company that purchased the 16 and am in a more stable company.  I think that factors that weighed in included revenues, but also market penetration, lit fiber miles, etc.  Someone with low revenue but good market penetration would probably not be looked at for acquisition.  If you want to share experiences you can reach me at kmcpmgoodson@yahoo.com.
204063
When new shares are issued by a company, can be either dilutionary (ie the value of the existing shares go down) or of negligible impact.\n\nFor example, new shares are issued during a stock split.\n\nLet's take a ficticious company that has 10 shares each valued at $1.  The company is valued at $10.\n\nThey have a two-for-one stock split, so there are now 20 shares.  The company is still valued at $10.  So each share is now worth $0.50.  This is dilutionary.\n\nLet's say the same company with 10 shares of $1 each issues 5 new shares for $1 each.  The company now has an additional $5 worth of capital to use in the business.  Notionally, this means that they are now worth at least $15.  There are a total of 15 shares on issue, so each share is now worth $1 each.   So, there is no dilutionary effect.\n\nNow, if that company had issued new shares at a price LOWER than $1 each (eg. $0.80) then there would be a dilutionary effect.\n\nNow that's all the theory.  What happens in practice is up to the market to decide.\n\nCheers,\nRichard.
1159460
You can't put a value on it.  It depends on who would want to buy it and how much they would be willing to pay.
460300
There are probably some small firms specializing in it.\nBut they do only standard valuation. (ie do not get involved in your business situation, just make an estimate based on your historical numbers, without using any valuation method).\n\nI could do a valuation for free as I'm a recent graduate in financial engineering and used to do lots of different valuations either stock-exchange listed or nonlisted companies. There are some 5-6 methods.\n\nSomething you could do on your own is to use comparables. IE compare your business to other similar businessess. If that doesn't help mail me.
1002564
Generally no, for a couple of reasons:\n\n1) most large acquisitions are acquisitions of equity interests (stock, partnership interest etc.). So the assets themselves are not being sold, just the equity in the company.\n\n2) for those acquisitions that are asset acquisitions, most of the property being purchased is not subject to sales tax or, if it is, it is being purchased for resale and thus exempt from sales taxes.\n\nThere may be other taxes like transfer taxes for titled vehicles and so on.
832552
With IT procurement you may have to choose between leasing or buying the equipment.  You may also have to consider the size of the company and see if you can buy directly from the vendor, if your company is large enough, or have to purchase machines from a value added reseller (VAR).  In addition to the hardware you also have to consider the purchase of the software.\n\nYou also have to consider the financial recording impact of the assets depreciating that is not indicative of other non-depreciating assets.
357375
Sorry to be equivocal, but it depends on the type of engineering and the type of company. Most large corporations will pay the entire cost of relocation for professional staff. That includes packing/moving expenses, temporary accomodations, food, etc. Some even offer employees perks like closing costs on houses if purchased within a certain timeframe or help finding a spouse or significant other employment.\n\nMany of these items are negotiable. Don't assume that because it's not offered it isn't available. Ask politely and be willing to offer things in return...showing up for the job on an earlier date, some flexibility in intial salary or raise if you absolutely/positively NEED help with moving expenses.\n\nSmaller companies or lower level positions in a larger company may offer no to only limited help with relocation. Again, this a usually a negotiable point. The only way to find out is to ask. Again, be flexible and try to offer something of "value" to them in return.
166202
that is actually pretty typical when a company/organization is taken over by another or a sale is finalized.  Be SURE to check things out and make sure that you WANT to stay there.  Often times when a corporate take over occurs, there are HUGE changes in salaries and benefits.
17630
A company does not benefit directly by appreciation in its stock price. A company's stock represents ownership interest in the company. Stock holders (e.g. individual investors, mutual funds, etc) own the stock of a company and therefore benefit when the stock price rises, because now they can sell the stock for a higher price than before.\n\nA company can indirectly benefit from stock price appreciation. When company A acquires another company B, the purchase price is usually paid in cash or company A's stock. So if company A's stock price is higher, then it could afford to pay more or buy more using its stock. Another benefit is employee moral. Many companies offer employees stock options, stock grants, or employee stock purchase plans to encourage employee ownership of company stock. So when the company stock price rises, the employees' investment is worth more.
789907
Typically, a business is valued either using EBITDA (earnings before interest taxes and amortization) or by looking at their NPV (net present value of cash flow). It can also be valued by looking at asset size.\n\nIn this case, I would go with EBITDA since it is a service business with no assets and NPV might not be applicable since the rent roll is relatively small.
223896
If it's a public company, then it's going to be stock price. Generally, coporate restructuring, layoffs, and the like are done to bring up the stock price. Shareholders like that. Also too you will see corporate restructuring through mergers and acquisitions to reduce overlap (e.g. HR departments, accounts payable departments, etc).
788852
Well what does the company sell?
219153
Accounting for intangibles is a quite complex issue. It depends on the accounting standards of the country. But, the general orientation is that mostly "acquired" intangibles are capitalised (i.e. accounted in the balance sheet), "home grown" intangibles, such as brands are expensed to the Income statement.\n\nOnce an intangible is capitalised it becomes an "intangible asset", and is amortised over time. The example in the previous answer is not precise. Goodwill, is only a part of the value paid over the real value of the company acquired. The rest of the premium should be accounted for the revaluation of the assets of the acquired company.\n\nIn short, accountants determine the value of the intangible assets based on a "transaction" between the buyer and the seller. Broadly speaking, "home grown" intangibles do not carry value, and thus not accounted on the balance sheet. In reality, some development costs and software can be valued, even though no transaction exists.\n\nGoodwill, patents, and trademarks can qualify as intangible assets if they satisfy the criteria for recognition as explained above. Human capital is a good example of showing the difference between intangibles and intangible assets. Normally, firms do not show their employees on their balance sheets, although they're firms' most valuable assets. The reason they're not accounted is the lack of objective criteria for measuring their value to the firm. Yet, there are some models in academic literature, which try to associate value to the employees. Football clubs, however, can account for their human capital, who are the players. Because, they have an objective measure of the fair value, which is the transfer fee paid as stated in a  transaction. Therefore, they can account for their players on their balance sheets.
448270
That's kind of vague.  You could start evaluating how well a company is doing using financial ratios.  http://beginnersinvest.about.com/od/financialratio/\n\nActually finding the value of a company takes more work with one of the standard methods such as WACC or APV.
763250
Can  you buy their portion of the company out?
451534
Check out the nasdaq website. Look up that company, find out how much one share of stock is selling for. Then find out the number of available shares. Then multiply the two. That's your answer.\n\nThat doesn't mean you could buy the company for that figure, but that will answer your question.
278882
It very much depends on the company.  From your description, I wouldn't hope for much.