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Econometric models, in the estimation of real estate prices, are a useful and realistic approach for buyers and for local and fiscal authorities. From the classical hedonic models to more data driven procedures, based on Artificial Neural Networks (ANN), many papers have appeared in economic...
Persistent link: https://www.econbiz.de/10011307187
This paper demonstrates that control premiums are warranted in the valuation of closely-held firms when perquisites …
Persistent link: https://www.econbiz.de/10011310297
Outside shareholders should benefit when the firm issues common stock through a private placement. Our propositions are (1) that the private issue of common equity creates a value-maximizing insider that has the incentive and ability to monitor and discipline, and thereby reduce agency costs and...
Persistent link: https://www.econbiz.de/10011310300
For the most part, closely-held firms must be valued using proxies for market data which are not available. Valuation …
Persistent link: https://www.econbiz.de/10011310319
In planning for succession of ownership, oftentimes the owner of a private business seeks to sell the business to either family members or employees. Arranging outside financing may be difficult or costly, making internal financing attractive. Self-cancelling installment notes (SCINs) provide an...
Persistent link: https://www.econbiz.de/10011310350
traded. This case is hypothetical, but the valuation issues pertaining to many of those closely-held firms are real. The case … actively traded” price, and valuation treatment of excess assets not needed in the operation of the firm. The desire for market … sometimes less than complete information pertaining to valuation issues for closely-held business. Some of these techniques are …
Persistent link: https://www.econbiz.de/10011310352
The ability of the market to price high growth stocks is examined by analyzing the returns to simple investment portfolio strategies based on public information. The portfolios consist of shares in the firms listed in the Inc. 100 Ranking of the fastest growing public companies in America. The...
Persistent link: https://www.econbiz.de/10011310357
This study examines the relationship between venture capitalist actions and the eventual disposition of a venture through an IPO, which is the most profitable exit strategy. The actions included in this study were ( 1) altering the amount of their investment; ( 2) securing a concentrated equity...
Persistent link: https://www.econbiz.de/10011310361
This paper presents a new method for valuing early stage ventures, a method which views new ventures as multi-stage call options. It examines the traditional methods for valuing such ventures--the ubiquitous Discounted Cash Flow (DCF) Method using a risk adjusted discount rate, and the Venture...
Persistent link: https://www.econbiz.de/10011310362
We empirically examine a sample of over 350 entrepreneurial firms that successfully receive an SBA guaranteed loan. The first portion of the paper contains descriptive statistics that lend anecdotal evidence concerning the organization type of borrowers, the incidence of collateral, the reasons...
Persistent link: https://www.econbiz.de/10011310372