After reading this article you will learn about the internal and external growth strategies adopted by a firm. Internal Growth Strategy: It is a form of growth strategy where firms grow from within. They use their own resources or acquire them from outside to increase their size, scale of operations, resources (financial and non-financial) and market penetration. Intensive Growth Strategy [...]
This article will help you to learn about the difference between horizontal and vertical integration. Difference between Horizontal and Vertical Integration Horizontal Diversification (Integration) 1. Nature: In horizontal diversification, two businesses, similar or dissimilar, join together. 2. Size of operations: Horizontal diversification enlarges the scope of operations and, thus, provides economies of scale. 3. Flexibility: Failure of one business does [...]
Some of the commonly used methods for calculating the valuation of a firm are as follows: 1. Capitalised Earnings 2. Assets Approach 3. Market Value Approach 4. Earnings per Share. Valuation of Firms: Method # 1. Capitalised Earnings: The capitalised earnings method is based on the philosophy that the price which a buyer would like to pay for the property [...]