Valuation of Finansbank Turkish Operations

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Finansbank Valuation Methodologies The National Bank of Greece, Deutsche Bank, and YF Securities all provided different offers for the purchase of major or controlling interests in Finansbank Turkish operations, which they derived using different valuation methodologies. A comparison of these valuation methodologies, insofar as they can be ascertained from published literature and other sources, provides an understanding of the appropriateness and influence of different financial considerations on overall valuations as seen from varying perspectives. A comparison of the three methodologies employed by the three competing institutions is provided in the following paragraphs. As the National Bank of Greece was the successful purchaser of Finansbank's Turkish operations, more detailed information is available regarding this bank's valuation methodology than the two banks with competing offers. Though the bank only purchased Finansbank's Turkish operations, calculations of the impact of international operations were made so as to clearly define the portion of value the National Bank of Greece was purchasing, and then an extensive analysis of debt and asset positions was conducted (Finansbank, 2006). There were of course greater complexities involved in the performance of these debt and asset valuations, however this was the basic approach the National Bank of Greece utilized in determining its offer for Finansbank (Finansbank, 2006). Projections of future value and

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