Product details

The Case is about the corporate valuation of the renowned Italian football team AC Milan. Different rumours have followed one another about the selling of the club in recent years, but only in 2015 the deal is finally achieved. The high price paid by the group of investors leaded by the Thai tycoon Mr Bee has astonished specialists in corporate finance, some of which have claimed that the price paid was excessive. We recognise that the valuation through the DCF approach would be inadequate, as the examined company does not have a publicly available industrial plan with economic and financial projections for the following years, has unstable and volatile economic results, and has recorded economic losses in every year in the period FY 2009-2014. Thus, applying the transaction multiples and trading multiples methods we get to a fair valuation of the club, which is different from the price paid by investors. The case helps the understanding of the difference between value and price and what can explain the distance between the two by examining a real life case.