PPP Business Plan 09 03

value of the company
In light of the above, below is the formula adopted for the evaluation of the P.
EURO 8,000,000(R)/0,080= EURO 100,000,000+EURO35,000,000= EURO 135,000,000/2= EURO 67,500,000
Please note that we have estimated the capitalization rate at: 8%.
It is also noteworthy to point out that the alternative methods to the Mixed Approach are the following:
• Financial Methods;
• Equity-based Methods;
• Income-Based Methods,
• Empirical Methods (eg. Comparable Transactions).
It is also noteworthy to point out that we have adopted the most conservative approach when evaluating the business since,
if other approaches were used, a higher market value would have resulted. In turn, this should provide a greater incentive
for new investors since it automatically converts in a higher equity percentage.
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