Fundamentals of Functional Business Valuation

Manfred Jürgen Matschke, Gerrit Brösel, Xenia Matschke
2010 Journal of Business Valuation and Economic Loss Analysis  
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
more » ... onal and the market value oriented theory of company valuation are discussed.
doi:10.2202/1932-9156.1097 fatcat:bh2puphdzvhbxppgnjnf4or3rq