Black Decker Tradesmen Segment Analysis
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Lecture 2
A Framework for business analysis and valuation using financial statement analysis
Objectives
Outline a framework for business analysis
Identify the major applications of this framework - purposes of analysis
Identify the four key analysis components
Outline the contribution of FSA for management decision making
C1. Business Strategy Analysis
understanding the business and its competitive strategies
C2. Accounting Analysis
how accounting rules and conventions represent the business in financial statements (shortcomings, critical analysis, redevelop)
C3 Financial Analysis
operating, financing and performance analysis using ratios and cash flows. Relate to competitors, historical performance
C4 Prospective Analysis
forecasted financial statements - using to estimate firm's value. Valuation - DCF, accounting methods (AEM)
4. Discuss application to a variety of decisions contexts
-Securities analysis
-Credit Analysis
-Merger and Acquisition analysis
-Corporate Financing policy analysis
-Management Communications Analysis
3. undertake structured analysis
-four components
4. Present results of each analysis
5. Interprete results of each analysis in the light of step 1.
6...