This question asked for a discussion of the relative merits of the valuation methods from part (a) in determining the purchase price for a company. Many answers struggle to gain good marks here.

Some answers did not go beyond outlining how each business valuation method worked, i.e. the steps followed in calculating a company value. Better answers looked to identify the relative merits of each business valuation method by identifying differences between them, for example asset-based or revenue-based methods, cash-based or profit based methods, and discounted or non-discounted methods.