*Timestamps* 6:00 Start of the class test 14:30 PRIVATE COMPANY VALUATION 14:30 Process of valuing private companies 16:10 1. No market value? 17:30 2. Cash flow estimation issues 21:17 Private company valuation: Motive matters 23:12 Private company valuations: 4 broad scenarios 23:50 I.Private to private transaction 25:46 An example: Valuing a restaurant 28:36 Step 1: Estimating discount rates 42:34 Step 2: Clean up the financial statements 44:39 Step 3: Assess the impact of the "key" person 52:31 Step 4: Don´t forget valuation fundamentals 53:30 Step 5: Complete the valuation 56:55 Step 6: Consider the effect of illiquidity 1:13:39 II.Private company sold to publicly traded company
Valuation points..1.key person discount 2.illiquidity discount...3..accounting problems...basically less faith in numbers provided by private company owners
Few advantages...where..private companies are in better positions...industries...which common people do not like but are essentials .1.dairy business in India...2.defence industry..3..marijuana company in usa...4.tobacco company.like ITC in india.
Hi Professor, are you going to take sessions about how to use monte carlo simulations to obtain a distribution for the stock value, instead of a point estimate for the stock value? Thank you for your lectures. Marco
Sir, you've referred to Econ 101 quite a few times during these lectures. Would it be possible for you to make a few videos on Econ 101? I've grown to understand finance a little bit courtesy of your videos, would be really great if you could post a few videos on Econ 101. Thank you so much, professor!
*Timestamps*
6:00 Start of the class test
14:30 PRIVATE COMPANY VALUATION
14:30 Process of valuing private companies
16:10 1. No market value?
17:30 2. Cash flow estimation issues
21:17 Private company valuation: Motive matters
23:12 Private company valuations: 4 broad scenarios
23:50 I.Private to private transaction
25:46 An example: Valuing a restaurant
28:36 Step 1: Estimating discount rates
42:34 Step 2: Clean up the financial statements
44:39 Step 3: Assess the impact of the "key" person
52:31 Step 4: Don´t forget valuation fundamentals
53:30 Step 5: Complete the valuation
56:55 Step 6: Consider the effect of illiquidity
1:13:39 II.Private company sold to publicly traded company
Thanks....🙏
Valuation points..1.key person discount 2.illiquidity discount...3..accounting problems...basically less faith in numbers provided by private company owners
Few advantages...where..private companies are in better positions...industries...which common people do not like but are essentials .1.dairy business in India...2.defence industry..3..marijuana company in usa...4.tobacco company.like ITC in india.
Hi Professor, are you going to take sessions about how to use monte carlo simulations to obtain a distribution for the stock value, instead of a point estimate for the stock value? Thank you for your lectures. Marco
what is r(squared) for VC in this example? How can I calculate it?
Which course/degree is this for? And does anyone have all the lectures for aswanth?
Sir, you've referred to Econ 101 quite a few times during these lectures. Would it be possible for you to make a few videos on Econ 101? I've grown to understand finance a little bit courtesy of your videos, would be really great if you could post a few videos on Econ 101. Thank you so much, professor!
Checkout on his channel the playlist "Foundations of Finance", I havent watched it, but I believe its alot of overlap of Econ 101.
You’re cracking up