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Fundamentals of Functional Business Valuation
Journal of Business Valuation and Economic Loss Analysis (2011)
  • Manfred Jürgen Matschke
  • Gerrit Brösel
  • Xenia Matschke

After a brief overview of different company valuation theories, this paper presents the main functions (decision, arbitration, and argument or negotiation function) of company valuation according to the functional (i.e., purpose-oriented) theory. The main body of the paper focuses on the decision function and shows how the decision value can be derived as a subjective limit value that different economic agents assign to the company. Finally, the differences between the functional and the market value oriented theory of company valuation are discussed.

  • decision function,
  • decision value,
  • functional business valuation,
  • subjective limit value
Publication Date
August 8, 2011
Citation Information
Manfred Jürgen Matschke, Gerrit Brösel and Xenia Matschke. "Fundamentals of Functional Business Valuation" Journal of Business Valuation and Economic Loss Analysis Vol. 5 Iss. 1 (2011)
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