Corporate Evaluation in the German Banking Sector

Foreword Corporate Evaluation in the German Banking sector is becoming more and more important. In times of hostile takeovers, missing success in the retail market and an unpleasant cost income ratio, especially small cooperative banks and savings banks are facing a changed situation they have never expected. The changing speed has increased dramatically in the German banking sector. While selling of a savings bank was not possible even 5 years ago, this hard frontier is broken up now. Banks have to manage this changed situation in order to prevent to be taken over or to increase the own value and the own independency accordingly. In both cases, the quantification of the own value is an essential aspect. The presented Master Dissertation of Svend Reuse solves theoretical and practical problems according to this topic. It combines actual value oriented management tools with the classical methods of corporate evaluation and the results of the actual status quo in the German ba- ing sector. The essentials can be summed up as follows: First, the theoretical status quo of corporate evaluation in the German banking sector was - fined. The result is that only the earnings value method, equity approach and multiplier method are useful for banks. All entity models must be rejected, as they do not consider the fact that a bank generates value with the liability side. Discussing several bank-individual evaluation models led to open questions.