The school furniture manufacturing company has a potential buyer who is interested in acquiring the company. The negotiations took place, and an offer was already made. The interested party, whose intention it is in obtaining the company was consulted about the value of the company. The result of the valuation of the consulting company resulted in a higher value than the offer itself. The research questions are: What are the strengths and weaknesses of the company? Is the actual offer sufficient according to the value calculated by the thesis? What is the actual value of the company now?

The students / authors of this bachelor thesis decided to calculate the enterprise value of the manufacturing company by using various methods such as the discounted cash flow model and the asset-based valuation. In order to indicate the performance of the company, they used the economic value added, for analyzing the historical statements. The output of the calculations indicates that the value of the company according to the students’ calculations, is higher than the offer and lower than the value of the consulting company.

The students concluded that the company performed poorly within the last five years. The low performance indication includes the economic value-added calculation and the income statements which showed a loss, resulting in negative free cash flows. The company shows a higher liability than their assets in the year 2023, resulting in a negative equity. Another weakness is that the company invested very little in the sales and marketing department. More in detail, the webpage of the company had a unattractive appeal when compared to the competitors. With the current technological advancements, the company should have a more modern webpage to have a better market presence. On the other hand, the expenses remained stable, and the company had a good inventory supply. In terms of the value price offered, the purchasing party did underestimate the company value according to the students’ calculations. Due to the confidential data, the students are not allowed to share the actual value of the company.