Session 22: Private Company Valuation - The Rest of the Story

In this session, we completed our discussion of private company valuation, starting with how to deal with illiquidity when valuing private businesses. We then looked at why the value of a private business will be higher to a public company or in an IPO and the special issues that arise from IPOs, including dealing with the IPO offer proceeds and the investment banking price guarantee. We closed the session byy looking at how to deal with expected transitions as a private company moves from a sole ownership to VC financing to a public offering. If you are interested in total betas and how different they are from market betas, by sector, you can get my estimates at the link below:http://www.stern.nyu.edu/~adamodar/pc/datasets/totalbeta.xls Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/pvtco2test.pdfSlides: http://www.stern.nyu.edu/~adamodar/podcasts/valUGspr17/session22.pdfPost class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session22Ctest.pdfPost class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session22Csoln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices