Analysis and Valuation of Privately Held Firms
Abstract
In most M&A deals, the target, acquirer or both are privately owned. And, in contrast to transactions involving publicly listed acquirers and target firms, acquirers often display statistically significant and positive abnormal announcement date financial returns. This chapter details the hazards of dealing with both limited and often unreliable data associated with private firms. This chapter then focuses on how to properly adjust problematic data as well as how to select the appropriate valuation methodology and discount rate for valuing privately owned firms. Considerable time is spent discussing how to apply control premiums, minority discounts, and liquidity discounts ...
Get Mergers, Acquisitions, and Other Restructuring Activities, 10th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
