A to Z of Business Strategy
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There are different ways to value a company, such as market price of shares, replacement cost of assets, and present value of the future expected cash flows. Ultimately, however, valuation is a subjective exercise that is as much art as science, says A.V. Vedpuriswar in ‘A to Z of Business Strategy’ . In an entry on ‘merger,’ he explains different types of merger, viz. horizontal, vertical, and conglomerate. “Many mergers fail to create value for shareholders because synergies identified before the merger fail to materialise,” the author adds.