Following the recent financial crisis, many banks are finding it increasingly difficult to book earning assets. To this end, many larger organizations are attempting to expand their consumer operations because of their relatively high promised returns. One dramatic move is to focus on the...

Abstract: New ventures that lack a financial history and have a future that is not only unknown, but may be unknowable pose unique problems to the investment community. Since conventional valuation techniques do not work in these cases, entrepreneurs and investors resort to techniques that rely...

There is a long running valuation debate regarding whether a control premium should be added to valuation based on guideline public companies because the share prices of the guideline companies represent marketable minority positions. This paper attempts to resolve that debate by developing a...

Abstract: In this study, we analyze what influences the size of the PCD for controlling stakes. As empirical research has shown, the discount applied to the value of private companies (or controlling stakes) can be quite significant. What is not clear, however, is what influences such a...

Traditional firm valuation discounts forecasted cash consequences that are understood as expected values under some scenario. It is not clear how, and to what extent, uncertainty is incorporated in the valuation. This article constructs a new valuation model where uncertainty, in particular...

Courts require royalty rate calculations based on rigorous economic foundations. The licensing literature provides limited guidance for royalty rate determination, leaving appraisal report readers wanting a more tangible and objective lens through which to judge the credibility of royalty rate...