Business Valuation for Small Medium Enterprise in the Shoe Industry

Alexius Reinaldo Hartadi Budiman, Raden Aswin Rahadi, Dwi Rahmawati

2019

Abstract

The footwear, leather product, and clothing industry contributed around IDR 35.14 trillion to the Indonesian state revenue in 2016. One of the products produced by this industry is sneakers. NAH Project is one of the local brand sneakers from Bandung has a desire to grow their business by opening a store, but to do it NAH Project needs additional funds from an investor. This research aims to conduct a company valuation of NAH Project and to find out whether customer preferences in buying sneakers affect the company valuation. There are five scenarios are conducted that are used for company valuation. This research uses DCF and APV methods in calculating company valuations and the questionnaire is used to find out the customer preferences and the customer price expectations toward sneakers. The results of this research show that the most optimal value for the company valuation is the first scenario that focuses on the official store with the value of IDR 6.4 billion. The customer's preference for sneakers and customer price expectations for sneakers affect the company valuation on NAH Project where customer preferences and customer price expectations for sneakers can affect the company's sales level, which will be a turmoil in the company's sales.

Paper Citation

in Harvard Style

Budiman A., Rahadi R. and Rahmawati D. (2019). Business Valuation for Small Medium Enterprise in the Shoe Industry.In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB, ISBN 978-989-758-408-4, pages 450-459. DOI: 10.5220/0008432404500459

in Bibtex Style

@conference{icib19,
author={Alexius Reinaldo Hartadi Budiman and Raden Aswin Rahadi and Dwi Rahmawati},
title={Business Valuation for Small Medium Enterprise in the Shoe Industry},
booktitle={Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB,},
year={2019},
pages={450-459},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008432404500459},
isbn={978-989-758-408-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB,
TI - Business Valuation for Small Medium Enterprise in the Shoe Industry
SN - 978-989-758-408-4
AU - Budiman A.
AU - Rahadi R.
AU - Rahmawati D.
PY - 2019
SP - 450
EP - 459
DO - 10.5220/0008432404500459