In 1889 the Shelton Iron, Steel and Coal Company Limited was incorporated to take over the assets and business activities of two existing companies. To guide the contracting parties in negotiating a price to be paid for the properties belonging to the Shelton Collieries and Ironworks an independent valuation was arranged by Deloitte, Dever, Griffiths & Co., later appointed auditors of the new company. The article comprises an appraisal of the valuation exercise, which is an early example of the use of a discounted cash flow technique to provide relevant information for a capital investment decision.
Edwards, John Richard and Warman, Alison
"Discounted cash flow and business valuation in a nineteenth century merger: A note,"
Accounting Historians Journal: Vol. 8
, Article 3.
Available at: https://egrove.olemiss.edu/aah_journal/vol8/iss2/3