Neil J. Beaton

Valuing Early Stage and Venture-Backed Companies (eBook, PDF)

• Format: PDF

Produktbeschreibung

Valuing Early Stage and Venture-Backed Companies Unique in the overall sphere of business valuation, the valuing of early stage and venture-backed companies lacks the traditional metrics of cash flow, earnings, or even revenue at times. But without these metrics, traditional discounted cash flow models and comparison to public markets or private transactions take on less relevance, calling for a more "experiential" valuation approach. In a straightforward, no-nonsense manner, the mystique surrounding the valuation of early stage and venture-backed companies is now unveiled. With an emphasis on applications and models, Valuing Early Stage and Venture-Backed Companies shows the most effective way for your company to prepare and present its valuations. Featuring contributed chapters by a panel of top valuation experts, this book dispels improper valuation techniques promulgated by unknowing business appraisers and answers your key questions about valuation theory and which tools you need to successfully apply in your specific situation. Here, you'll find out more about various valuation techniques, including: * "Back solving" valuation * Modified cost approach * Option pricing model * Probability-weighted expected returns model * Asian puts * New data on discounts for lack of marketability Detailed and hands-on, Valuing Early Stage and Venture-Backed Companies equips you with broad foundational data on the venture capital industry, as well as in-depth analyses of distinct early stage company valuation approaches. Performing valuations for your early stage company requires an understanding of the special circumstances faced by your organization. With ample examples of generally accepted allocation models with complex capital structures common to early stage companies, Valuing Early Stage and Venture-Backed Companies mixes real-life experience with deep technical expertise to equip you with the complete, user-friendly resource you'll turn to often in valuing your early stage or venture-backed company.

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 224
• Erscheinungstermin: 19. Februar 2010
• Englisch
• ISBN-13: 9780470602744
• Artikelnr.: 37297727

Autorenporträt

NEIL J. BEATON, CPA/ABV, CFA, ASA, is a nationally known business valuation expert and speaker on the valuation of early stage companies. He is the National Partner in Charge of Valuation Services for Grant Thornton, LLP, an international audit, tax, and financial advisory services firm. He has more than twenty-seven years of professional experience and is a recognized expert witness in state and federal courts as well as international tribunals. He has authored an AICPA publication on valuing stock options and intangible assets for financial reporting purposes.

Inhaltsangabe

Acknowledgments. About the Author. Preface. Chapter 1 Laying the
Foundation. A Unique Landscape. An Overview of the Venture Capital
Industry. Conclusion. Chapter 2 Understanding Early Stage Preferred Stock
Rights. Stock Rights. Contractual Rights. Conclusion. Chapter 3 Enterprise
Valuation Approaches. Relevancy of Traditional Valuation Approaches. Cost
Approach. Market Approach. Income Approach. "Vectoring" Valuation Approach.
The Income Approach as an Oxymoron. Conclusion. Chapter 4 Application of
the Option-Pricing Method in Allocating Enterprise Value. Important
Assumptions Underlying the Option-Pricing Model. Option-Pricing Method
Steps in Application. Other Considerations in the Option-Pricing Method.
Pros and Cons of the Option-Pricing Model. Conclusion. Chapter 5
Application of the Probability-Weighted Expected Returns Method in
Allocating Enterprise Value. Illustration of the PWERM. PWERM Critical
Assumptions. Overview of Stock Rights. Identification of Outcomes. Updating
PWERM Analyses. Conclusion. Chapter 6 Applicable Discounts for Early Stage
Companies. Basis of Discounts. Suggested "Corrections" to the Current Use
of Put Models for Quantifying DLOMs. Dilution Discount. The Likelihood of
Liquidity. Conclusion. Chapter 7 Advanced Valuation Topics for Early Stage
Companies. Utilizing the OPM as a "Valuation" Methodology. Sequential and
Compound Options. Allocating the Residual Value. Further Extensions for
Compound Options. Venture Capital Rates of Return. Executive Stock
Compensation. Conclusion. Appendix A Allocation of Enterprise Value Using
the Option-Pricing Method: Treatment of Derivatives on Common Stock.
Appendix B: Volatility in the Option-Pricing Model. Notes. Index.