The Value of Corporate Control and the Comparable Company Method of Valuation
The comparable company method of valuation does not account for the value of corporate control. Therefore, the method must be adjusted if it is being used to value a company involved in a change-of-control transaction. We provide two alternative ways to adjust the comparable company method for the v...
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| Veröffentlicht in: | Financial management 2004-04, Vol.33 (1), p.91-99 |
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| creator | Finnerty, John D. Emery, Douglas R. |
| description | The comparable company method of valuation does not account for the value of corporate control. Therefore, the method must be adjusted if it is being used to value a company involved in a change-of-control transaction. We provide two alternative ways to adjust the comparable company method for the value of corporate control. The efficacy of the adjusted comparable company method is confirmed on 51 highly leveraged transactions (HLTs) from Kaplan and Ruback (1995). |
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| fulltext | fulltext |
| identifier | ISSN: 0046-3892 |
| ispartof | Financial management, 2004-04, Vol.33 (1), p.91-99 |
| issn | 0046-3892 1755-053X |
| language | eng |
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| source | EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing |
| subjects | Accounting methods Accuracy Acquisitions & mergers Business structures Business valuation Estimates Estimation methods Financial transactions Market prices Pharmacists Price premiums Stock prices Target acquisitions Target companies Valuation Valuation methods |
| title | The Value of Corporate Control and the Comparable Company Method of Valuation |
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