Fundamentals of Functional Business Valuation

Manfred Jürgen Matschke, Brösel Gerrit and Xenia Matschke
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Brösel Gerrit: Technische Universität Ilmenau

Journal of Business Valuation and Economic Loss Analysis, 2010, vol. 5, issue 1, 41

Abstract: After a brief overview of different company valuation theories, this paper presents the main functions (decision, arbitration, and argument or negotiation function) of company valuation according to the functional (i.e., purpose-oriented) theory. The main body of the paper focuses on the decision function and shows how the decision value can be derived as a subjective limit value that different economic agents assign to the company. Finally, the differences between the functional and the market value oriented theory of company valuation are discussed.

Keywords: decision function; decision value; functional business valuation; subjective limit value (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (9)

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Working Paper: Fundamentals of Functional Business Valuation (2008)
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DOI: 10.2202/1932-9156.1097

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