Discuss the significance and shortcomings of the following in relation to FMCG business: (iii) Business worth.

CS Professional · Valuations & Business Modelling · PYQS · December 2020
Discuss the significance and shortcomings of the following in relation to FMCG business: (iii) Business worth.

Answer & Explanation:

(iii) Business Worth In the context of FMCG industry the value of business is a function of multiple factors such as:- a. Brand strength b. Distribution penetrative and reach in the multiple titrations and geographic c. Quality of management d. Quality and capacity of production facilities. The value of business of FMCG Company would be a combination of tangible and intangible assets. In case of FMCG, intangibles (such a brand) carrier a higher value than the tangibles.

Topics: Financial Analysis

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