Saturday, November 14, 2009

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empirical methods

Contribution
purely qualitative method to determine an exchange ratio in a merger

Identifies value drivers of the bank:

  • Collection
  • Cost / income
  • Employees Total revenues
  • number of customers ....
For each variable we calculate the percentage of contribution to the total value or medium without the merger. We calculate the contribution margin as a major contribution to a bank other than the total value drivers of the merger. This contribution margin allows you to "invent" a subjectively estimated correction to the exchange ratio with other medodi

SOP: Sum Of Parts
Ratings differentiated for different business areas.

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