Session 21 (Val MBAs): Valuing Private Companies and IPOs

In this session, we started by looking at the challenges of valuing private-to-private transactions, where the buyer of a private business is undiversified and cares deeply about illiquidity, and how the values are depressed as a consequence. We then drew a contrast to the same company being valued by a public company, and argued that this should lead to private businesses increasingly become parts of public companies or going public themselves. In the final section of the class, we looked at valuing/pricing IPOs, and how to deal with offer proceeds from the IPO and the IPO process itself. In the next session, after the quiz, we will start our discussion of real options, requiring you to download and bring packet 3 with you.
Start of the class test: pages.stern.nyu.edu/~adamodar...
Slides: pages.stern.nyu.edu/~adamodar...
Post class test:
pages.stern.nyu.edu/~adamodar...
Post class test solution: pages.stern.nyu.edu/~adamodar...

[@subhamchowdhury6296]

thank you these valuable insights professor

[@AsadMatinKhan]

thank you Sir for such valuable lesson

[@harishsai2852]

Hi professor, if DLOMC is not appropriate why are DLOMCs different based on standard of value? In the UK when we speak about unrestricted market value (UMV) we discount it at almost 40% - 70%>

[@iky5086]

hi prof, the link to the slide seems to be broken