This website uses cookies to ensure you have the best experience. Learn more

Business Valuation Essay

5879 words - 24 pages


GROUP MEMBERS
DauTran Phi Quang: 24551139
Le ThuongHien: 21530459


AFF5280 - Institutional Asset & Liability Management
GROUP ASSIGNMENT

Table of Contents

EXECUTIVE SUMMARY 3
INTRODUCTION 4
1. COMPANYANALYSIS 5
1.1 Company overview 5
1.2 Product & Services 5
2. INDUSTRY ANALYSIS 8
2.1 Industry overview 8
2.2 Competitors analysis 8
2.3 Current state of the economy 8
2.4 Porter’s five forces 13
2.5 SWOT Analysis 16
3. BUSINESS AND FINANCIAL RISKS ANALYSIS 16
3.1 Liquidity Risk 16
3.2 Capital risk 19
3.3 Strategic risk 22
3.4 Credit risk 23
3.5 Foreign exchange risk 25
3.6 Market risk 27
APPENDICES 29
REFERENCES ...view middle of the document...

Finally, the recommendation about the risk management strategy of the company will be presented in order to make a conclusion about the overall content of the report.

INTRODUCTION
Purpose
The primary purpose of this report is to provide a financially risk management analysis of Bendigo & Adelaide Bank Ltd.
Methodology
The main content of the report is relied on the current state of economy, industry & peer analysis and financial information of the company’s operation and business structure. In order to complete the report, both qualitative and quantitative methods are implied to perform the industry and peers analysis.
Data
Most of the financial and statistics data in the report have been obtained from academic databases including IBIS World, Index Mundi, Fin Analysis and Bank Scope. Moreover, the company’s annual reports, Reserve Bank of Australia (RBA) have been taken into account effectively.
Assumptions and Limitations
Some financial and academic information related to the bank’s operation and position is restricted to publicly available. It leads to limitation in the ratio calculation as well as risk management strategies recommended.

1. COMPANYANALYSIS
1.1 Company overview
The Bendigo & Adelaide Bank Group was established in November 2007 as a result of the merger between Bendigo Bank and Adelaide Bank with an aim to become Australia’s leading customer-connected banking group. Taking the advantage in economies of scale, the company provides an extensive range of banking and financial services under four distinct brands comprising of Bendigo Bank, Adelaide Bank, Bendigo Wealth and Sandhurst Trustees.
However, the major focus of the company is the retail banking and wealth management services which are responsibly presented by the Bendigo Bank. Therefore, the primary purpose of the report will critically analyse and evaluate the business structure as well as the performance of Bendigo Bank.
At the present, Bendigo Bank officially serves its customers via a diverse distribution network of more than 900 outlets, 190 company-owned branches, 275 locally-owned Community Bank branches, 90 agencies and 1900 ATMs. The critical priority of the bank is to develop a broader network and higher quality of services in order to maintain its strong growth and retention of customer deposit base. In 2012, according to the Roy Morgan’s Bank customer satisfaction survey, Bendigo was rewarded as the “business bank of the year” by leading the industry in customer satisfaction.
1.2 Product & Services
The bank’s traditional products and services can be classified into three main aspects including (1) Wealth management, (2) personal banking and (3) business banking

2. INDUSTRY ANALYSIS
Due to the major focus on retail banking and wealth management services in Australia market, Bendigo & Adelaide Bank Ltd’s industry sector should be classified as “National and Regional Commercial Banks”. Apparently, the industry major...

Other Papers Like Business Valuation

Valuation Essay

4540 words - 19 pages payoffs for two years (2009 and 2010) Chapter 1: Knowing the business |Chapter 1: Select a Company and Gather Documents—Question 1 | |Fill in the page numbers on the annual report where the following are located. | |Required information for this workbook project. |Page No. |Required information for this workbook

Technology Valuation Essay

2106 words - 9 pages GUIDE ON VALUATION OF TECHNOLOGY Guide on Valuation of Technology TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 1.2 1.3 1.4 DEFINITION OF TECHNOLOGY ROLE OF TECHNOLOGY OPEN INNOVATION STRATEGIC ALLIANCES 3 3 3 3 4 2.0 VALUATION OF TECHNOLOGY 5 3.0 VALUATION METHODS 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 TWENTY-FIVE PERCENT (25%) RULE INCOME TECHNIQUE MARKET APPROACH COST METHOD RELIEF FROM ROYALTY TECHNOLOGY FACTOR APPROACH

Valuation Analysis

2018 words - 9 pages adjustment must be compensate for differences and not accentuate variations. Step 1: Select Universe of Comparable Companies • Study company and sector specific information You cannot hope to define comparable companies until you understand the company you are valuing and the factors influencing the data used in the valuation Step 2. Locate the Necessary Financial Information Key Characteristics of Target Company Business Profile

Whatsapp Valuation

1486 words - 6 pages more direct terms, buying a company that is a poor strategic fit at a low price is vastly preferable to buying a company that fits like a glove at the wrong price. So, let's get back to valuation basics. What is the value of Skype? The question is rendered more difficult to answer because Skype is a private business and we know little about the insides of the financial statements. It is widely reported, though, that Skype had operating losses of $7

Apach Valuation

1775 words - 8 pages the acquisition market. ◇Valuation. In this report, the main method I used to value the company is DCF model with reasonably estimated data based on the company’s historical performance. ◇Main growth driver: (1) the increasing needs of oil and gas.(2) exploitation and extension of existing producing fields.(3) acquisition. source: google finance Business Description General Information Apache Corporation, a Delaware corporation

Bond Valuation

1462 words - 6 pages BOND VALUATION The financial value of any asset, be it a security, real estate, business, etc., is the present value of all future cash flows. The easiest thing to value (conceptually) is a bond since the promised cash flows are known with certainty. Consider a bond that pays a 10% coupon (or stated) rate of interest, has a par (or stated) face value of $1,000 and matures in 5 years. Suppose also that the market rate of

Stock Valuation on Pepsi

2508 words - 11 pages I. Introduction Financial examiners and practitioners have long been concerned in comprehension how the behavior of financial forecaster influence investment market efficiency. These investment analysts generate company earnings prediction, note down the details on particular organizations, provide business and sector examination, and make stock suggestions. Analysts assemble and practice a variety of information about numerous stocks, from

Valuation with Multiples

4017 words - 17 pages Abstract This study addresses the differences between firms and the impact on valuations based on multiples. It broadly describes the need for relative valuation which is increasingly used in assessing individual business or corporations. On a theoretical level, it captures the advantages and shortcomings of multiples. It also describes why the multiples differ from one institution in one sector to another whilst addressing the factors that

Valuation for Hospital Industry

5125 words - 21 pages may not be very close to being realistic as there are two segments of the business i.e healthcare and pharmacy which can grow at different rates due to their different stage of business. * The valuation is highly sensitive to the terminal growth rate which is assumed optimistically at 7% * The projections have been done only for 5 years whereas since the business is capital intensive with a long gestation period, it benefits in the long

Adm Stock Valuation

3359 words - 14 pages in a valuation of $63.499 per share. The multiples method resulted in an intrinsic value of $74.92. Using the assigned weights to each method the target share price of the company was valued at $91.43. Recommendations ADM operates in an industry that is volatile due to its dependence on the commodity prices. It therefore faces a lot of uncertainty in its earning which it should hedge by committing more resources to its futures business. The

Valuation

2122 words - 9 pages , the base-case assumptions beneath will provide justification to this shortcoming. Turnover The turnover rates were increasing from 1999 to 2001 despite the Body Shop suffered some huge losses from its business in 1999 and 2001. The losses, basically, are due to the intense competition Body Shop faces from the new entrants. However, based on the upward trend shown in the historical data and also taking the compounding effect into consideration

Related Essays

Business Valuation And Financial Analysis

3057 words - 13 pages 1. Introduction The Oroton group is a public listed retail company in Australia. The purpose of the report is to analysis the company’s performance during the past five years. This report will analyze financial analysis by using several key ratios. Prospective analysis will be based on these ratios to assume the company’s position in the future. Valuations of the company can be determined by fore valuation models. Sensitive analysis can be

Methods Of Business Valuation Essay

1233 words - 5 pages Companies should focus on their own strategy, resources and opportunities, it is important to recognize that other companies will often be carrying out similar analyses, and trying to exploit the same opportunities. As such, any business strategy needs to consider what the firm’s competitors are doing and how this will impact. With more than one team, the actions of competitors will play a vital role in successful strategic planning. Using the

Valuation Essay

1294 words - 6 pages BUSINESS VALUATION METHODS (All Valuations MUST BE based on Historical Data) I. Adjusted Book Value Take the Book Value of net worth -assets not acquired +liabilities not assumed +fair market value of assets acquired +any net worth adjustments =Adjusted Book Value ____________________________________________________________ II. Capitalized Adjusted Earnings First Step: Adjust Historical Earnings Seller’s Discretionary Cash Flow Net Profit

Valuation Essay 1388 Words

1388 words - 6 pages Given the background of ACC and AirThread, do you think the acquisition is a good idea? Briefly explain your answer. Yes. First, American Cable Communication (ACC) and AirThread could help each other compete in the industry that was moving more and more bundled service offerings. Second, the acquisition could help both companies expand into the business market. Third, ACC was in a unique position to add value to AirThread’s operations because