Explain and justify the strategic, business and operational value created and delivered by the proposed app and BIS solutions.

Explain and justify the strategic, business and operational value created and delivered by the proposed app and BIS solutions.
Netsurf’s value
Fair market value
According to the vision of the business, it aims at being a dominant leader app developer as well as a broadband provide in the competitive market. This is an indication that the business has a Fair Market Value which is the most basic type of value for a business since it shows the business has a price upon which a willing buyer and a willing seller can reasonably agree on the open market (Mercer, and Harms,2020, p 23). Since the vision of the firm is to be a dominant leader in the competitive market, it has to be enlisted in the securities market. As such the stock market value of the firm shows its fair value in an openmarket. However, the firm is classified at the bench mark level. Since it’s a new company, it will be categorized in the marketable minority level of value. This means that, it is in the pricing of the same price as if there were a free as well as active market for its shares (Mercer, and Harms, 2020, p 29).
Marketable minority level (benchmark) value
Every private company views the marketable minority level as a construct which indicates that the appraisers will examine the prices assumed by the public companies to be similar as possible to the subject of valuation in this case the guideline public companies (Liu, Yang, Qu, and Liu, 2016., p 38). In addition, the private company will infer appropriate valuation metrics as well as multiples from the metrics displayed by a public company that is similar. Netsurf value is reviewed using the traditional valuation methods since the firm’s strategic position is to be a cost leader. Being a cost leader, is to ensure that costs are as low as possible to the extent that they do not affect the value of the firm. As such appraisers are used to develop indications of value at the benchmark level of value first. The value of Netsurf qualifies to be a marketable minority since its valuation process is presented as a minority concept which does not have any control.
Investment value
Qualifying to be in the benchmark level also allows the firm to have an investment value. Appraisers can use direct capitalization which involve capitalization of income stream of the property which is a common method in determination of te market and investment value.This is done through the appraisal of Netsurf and since the firm aims at being the best app offering easy solutions to customers, its value would increase above the appraised amount. Investment value is uniquely delivered through the uniqueness of the products sold and also the foreseeable future of the company which according to the Mission and vision statements, it looks promising.
Mercer, Z.C. and Harms, T.W., 2020. Business valuation: an integrated theory. John Wiley & Sons.
Liu, S., Yang, Y., Qu, W.G. and Liu, Y., 2016. The business value of cloud computing: the partnering agility perspective. Industrial Management & Data Systems.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>