Calculating Terminal Value
Corporate restructure has a major impact on human resource activities. HR professionals collaborate and advise their corporate partners on these major decisions, and their implementation impacts and rallies the services provided from every specialty within HR. In Chapter 9, we learned some new analytical measures that help us evaluate these major investments and changes. Please use what you learned to discuss the following:
Why do we calculate terminal value when valuing a business if we did not use it for the team projects?
What would influence a Technology industry corporation’s make or buy decision if it wanted to add a new IT consulting services division specialized in social media data mining?
When two corporations merge, how are the newly-formed business entity’s HR activities impacted? What activities would HR undertake to integrate the two former companies into this new entity?
Instead of valuing a company based on its debt and equity, what would be the difficulty of valuing all the assets of a business?