Escolar Documentos
Profissional Documentos
Cultura Documentos
Presenter
Venue
Date
Public Firms
Less mature
Public Firms
Lower quality of
pressure to make timely,
information disclosure detailed disclosures
risk and valuations
Shareholders have a
longer-term perspective
Public Firms
Greater number of
shareholders
Concentration of control
Transactio
n Related
Private financing
IPOs
Complianc
e Related
Litigation
Related
Financial
reporting
Damages
Acquisitions
Bankruptcy
Compensation
Lost profits
Tax reporting
Shareholder
disputes
DEFINITIONS OF VALUE
Fair Market
Value
Market Value
Tax reporting
Real estate and tangible asset
appraisal
Fair Value
Investment
Value
Intrinsic Value
Investment analysis
EARNINGS NORMALIZATION
RI (1 g )
rg
$400,000
$1,600,000
$225,000
5%
12 %
3%
18 %
Risk-free rate
1.00 %
6.00 %
Beta
1.50
4.00 %
1.50 %
1.20 %
$6,800,000
Normalized EBITDA
$28,000,000
20 %
18 %
ASSET-BASED APPROACH
VALUATION DISCOUNTS/PREMIUMS
DLOC EXAMPLE
Given a control premium of 19%
1
DLOC 1
16.0%
1 0.19
VALUATION DISCOUNTS
VALUATION DISCOUNTS
Given a DLOC of 20% & DLOM of 16%
VALUATION STANDARDS
SUMMARY
SUMMARY