What's it worth?: one reason why construction has undergone less consolidation than other sectors is the difficulty that potential purchase have in making accurate valuations
Article Abstract:
Most businesses, including construction, are usually valued on their future earnings potential, or on asset value, giving an approximation of expected cash returns. However in the construction industry, the level of sustainable profits can be questionable, with the asset base relatively small. Buyer and seller must base the competitive position on niche skills, geographic presence and reputation. There is also a need to determine a commercial assessment through published information, which is usually inadequate, and additional non-published information.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
PFI on a smaller scale
Article Abstract:
It is not clear whether the private finance initiative (PFI) would be a practical proposition for small scale projects. If schemes are to work there will need to be compromises, such as more closely specified projects and transparent bidding criteria. Standardisation would need to extend to the private capital suppliers, and to bid and perform the contract, bidders would require full design and construction capabilities.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Margins of error
Article Abstract:
Business organisations within the United Kingdom construction industry have great trouble in providing a true picture of company accounts. Building contracts are notoriously complicated because they usually involve several parties in negotiation with one another and the customer. Annual accounts rarely provide enough information on cash flow and profit. An example is given as an illustration.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: What's bugging us now? Security's safer than houses: construction is unlikely to get much help from the government before the next election
- Abstracts: Costs before a contract. A clear view of the pitfalls: a new guarantee bond that attempts to introduce clarity of purpose into insurance is not a panacea for all employers
- Abstracts: Let there be light: candle smoke and structural weakness eclipsed the dome of Jerusalem's Church of the Holy Sepulchre for 50 years
- Abstracts: Tax shock for small builders. Lottery landmark in closure shock. Confusion reigns over tax crackdown
- Abstracts: Anti social housing. A tale of new cities. Prefab sprout