Views to the merging effect in civil law partnerships (§ 705 ff. BGB)

WALTER MAX SCHMITT, HELMUT HOFFMANN

Published: 01.11.1999  〉 Heft 11/1999  〉 Resort: Articles 
Submitted: N. A.   〉 Feedback to authors after first review: N. A.   〉 Accepted: N. A.

ABSTRACT

The determination of the merging effect in civil law partnerships poses a complex problem. For the quantification of the merging effects, two dynamic models were developed. In the first model profits are estimated for 10 years in advance. This is based on accounting data. In the second step, cash flows are derived and discounted with the use of company valuation model. The merging effect ist calculated by the difference of the collected value determined for the equity capital with and without mergers taking place. The calculation is based on the Adjusted-Present-Value method. This valuation method enables a single analysis of the results of the merging effect.

CONTACT AUTHOR
Download Cover
DOWNLOAD THIS ARTICLE HERE

RELATED ARTICLES