STAGE 3_Market approach method.

AñadActivity Guide and Evaluation Rubric – Stage 3 Identify technology valueir título

ANDREA YORLENY ZAMUDIO CARREÑO CODE: 212032_172 Industrial engineering.

VALUATION AND NEGOTIATION OF TECHNOLOGY

Presented to: Víctor Manuel Rodríguez Castiblanco.

Market Approach Method

(UNAD) NATIONAL UNIVERSITY OPEN AND DISTANCE. CEAD (José Acevedo y Gómez) 2022

Market Approach Method

• Definition of selected topic.Market approach method. A market approach is a method of determining the value of an asset based on the sale price of similar assets. It is one of three popular valuation methods, along with the cost approach and discounted cash flow analysis (DCF). Regardless of the type of asset being valued, the market approach examines recent sales of similar assets, making adjustments for the differences between them. For example, when valuing real estate, adjustments can be made for factors such as the area of the unit, the age, and location of the building and its facilities.

• Related processes and mathematical formulas for calculating the value of technology using the selected method.

The appraiser should look at recent transactions involving similar assets. As these assets are unlikely to be the same as those valued, several adjustments will be required. In some markets, such as residential real estate or stock trading, there is often a lot of data available, which makes the market approach relatively easy to use. In other markets, such as private equity or investment, such as fine arts or wine, it can be quite difficult to find comparable agreements. In situations where limited data are available, the evaluator may need to rely on alternative methods, such as a cost approach or an up-to-date cash flow analysis. The main advantages of the market approach are that it is based on publicly available data on comparable transactions. As such, it may require fewer subjective assumptions than alternative approaches. The main disadvantage of the market approach is that it can be impractical in situations where there are few, if any, comparable transactions, as in the case of a private company operating in a niche market with few competitors.

The market approach is based on comparable transaction data. By looking at these results, you begin to come to general conclusions. For starters, you'll see that the price of apartments per SF is between $140 and $275, and that higher prices apply to those with more bedrooms and bathrooms, better views, installable appliances, and no need for renovations. By contrast, the price of the apartment you are looking to buy is $200 per SF and has even less of these features than the cheapest priced apartment on your table. This seems to justify his intuition that the apartment is crowded. Based on this information, you decide to bid for $150,000. The seller accepts your offer.

• Answer to the question: How can companies create value from their innovation?

First of all entrepreneurs then must be willing to innovate if they want to see their companies reach the growth and profitability goals they seek. But innovating is not easy, starting because many times we do not understand, or confuse what it means to innovate, and the reasons why we should do it. the company must prepare itself "mentally" to innovate to create value in the company, and this implies a very important cultural change that is rarely taken into account. Since innovating involves sometimes very great sacrifices, we must first be willing to break paradigms that can be deeply rooted in the behavior and daily actions of staff. These paradigms were surely positive in the past, and at the time allowed the company to establish rules of action that have somehow worked for it over time.

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