Oct 15, 2014 15:47
10 yrs ago
1 viewer *
German term

Größen

German to English Bus/Financial Finance (general)
"Dies bedeutet nicht, dass ein Nullwachstum bestimmter Größen unterstellt wird, sondern lediglich ein konstantes Verhältnis der Größen mit Eintritt in die ewige Rente."

I'm trying to settle on the appropriate term for Größen in this sentence?

The subject is mergers and acquisitions and their effect on enterprise value. The sentences that precede this one talk about a phase model that has been established as the dominant approach to forecasting in valuation, which divides the forecast into a detailed planning period of three to five years and a subsequent residual value phase. Based on the going concern premise, the residual value period indicates a future equilibrium or steady state, a condition characterized by stable returns on net capital expenditure made after the detailed planning period.

Any ideas what the Größen is specifically referring to?

Many thanks
Proposed translations (English)
3 +4 Values
5 -1 magnitude
3 assumptions

Proposed translations

+4
7 mins
Selected

Values

In the context you provided, it probably means values.
Peer comment(s):

agree Thomas Pfann : should fit here - I was also thinking 'indicators' (if it fits the further context)
45 mins
agree philgoddard
1 hr
agree David Hollywood : or maybe "factors"
10 hrs
agree Cetacea
18 hrs
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4 KudoZ points awarded for this answer.
-1
49 mins

magnitude

magnitude
Peer comment(s):

neutral Thomas Pfann : Don't know why it's ok to agree without saying why but not to disagree without saying why. Anyway, I don't see at all how the term 'magnitude' could fit here but if Phil thinks it could work I'll retract my 'disagree' and apologise for the 'Schnellschuss'
3 mins
agree philgoddard : You can't just disagree without saying why, Thomas. This seems a perfectly acceptable translation to me.
31 mins
disagree Cilian O'Tuama : disasgree, with philgodard too, of certain magnitudes!? We need sth. more tangible.
7 hrs
disagree Cetacea : "magnitude" would be "Grössenordnung". In connection with "Nullwachstum", it's definitely different (indicator) values we're talking about here.
17 hrs
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17 hrs

assumptions

I guess it depends on how you have translated the previous passages, but "assumptions" may work here? I think the gist is that the valuation model will be driven by assumptions on growth in sales, costs etc and these can be varied relative to each other in the detailed planning phase of the model. When you get to the final phase and you are capitalising with a perpetuity growth rate, the relationship between these assumptions is fixed, still within a context of overall growth.
Peer comment(s):

neutral Cetacea : Yes, but the sentence starts something like "This does not mean that we assume ("unterstellen") zero growth" (of those "Grössen"), so you'd end up with a lot of assumptions. Of course, that's always the case with those things... ;-)
1 hr
Agreed, these models do have loads of assumptions and their accuracy is often spurious in the light of the uncertainty of looking into the future!
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