1) I need a good desrcption/understadning of different methods of evulating private companies. (i need to...

1) I need a good desrcption/understadning of different methods of evulating private companies. (i need to turn this into a 500 word essay so the more detial the better thank you!)

1b) Out of the numerous mathods that exsist, i need to illustarte three through excel (please explain in detial how this would work or how it should be laid out if possible thank you!)

Expert Solution

Hi,

Valuing private companies has always been the most difficult task because of non availability of the information about the subject company.Since, this non availability of information is the key factor we tend to look at various other methods for valuing a private company.

The best approach towards valuing a private company would be the method of comparables. In this process you will have to find a public company that is comparable and then use the variables of the company and adjust them as and when needed to fit the numbers for the private company.

After the adjustment you can use the numbers for the valuation of the company.

Now for eg. you find out that the Public company has a D/E Ratio of 3X. This would imply that the private company should ideally also have a D/E of 3X. But this may not be true. Since this is the private company the lenders would ask for a higher equity in the company. Or, they may charge higher interest which would adversly affect the bottom line of the company. Hence the Debt or the Equity portion might have to be adjusted in order to attain a number that reflects the actual position of the company.

jeff jeffy answered 2 years ago

So for a paper I need to determine strengths and weaknesses of research methods in different...

So for a paper I need to determine strengths and weaknesses of research methods in different articles, but I don't exactly know what I should be listing as strengths and weaknesses when assessing the methods, results, and conclusions. I need help breaking down this methods paragraph to understand what to be looking for. "In this double-blind, placebo-controlled trial conducted at 30 clinical centers, we randomly assigned patients with the Lennox–Gastaut syndrome (age range, 2 to 55 years) who had had...

I JUST NEED THE ANSWER, THX. Three different companies each purchased trucks on January 1, 2018,...

I JUST NEED THE ANSWER, THX. Three different companies each purchased trucks on January 1, 2018, for $80,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $4,000. All three trucks were driven 78,000 miles in 2018, 55,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $69,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company...

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b....

Question 1 a. Define a (i) private good; (ii) public good; and (iii) common resource. b. What is a “free rider problem,” and what challenge does it pose for the private production of public goods and services? c. How is the demand for a public good different from the demand for a private good? d. Outline the role government plays in the provision of public goods.

Suggest and explain the best valuation methods for valuing the following 1) Private companies 2) Financial...

Suggest and explain the best valuation methods for valuing the following 1) Private companies 2) Financial services (Banks etc) explain why Valuation using anything such asmultiples/DCF/DDM. working out the value of private firms - what is the best technique?

Discuss the different reimbursement methods of private health insurance plans

Suppose I need to model a bank which provides loans to different companies. Further suppose that...

Suppose I need to model a bank which provides loans to different companies. Further suppose that the only companies in my data model are those to whom I am providing loans or have provided loans in the past. What is the appropriate minimum cardinality for the relationship between LOAN and COMPANY? Suppose I need to model a credit card company where each customer can receive up to one credit card and each card can be sent to only one address....

Companies can erase opportunities of fraud by using different methods, briefly discuss these methods and give...

Companies can erase opportunities of fraud by using different methods, briefly discuss these methods and give your opinion on which way is the best and why?

Companies can choose from different costing methods: process/product costing and activity-based costing. The company I chose...

Companies can choose from different costing methods: process/product costing and activity-based costing. The company I chose is CVS. Using the CVS company answer the following questions: What are the differences between the two costing methods, and how do these apply to your company? What are some ABC cost drivers the company might use? How could the costs differ if one method is chosen over the other? Which method would you recommend for your company, and why?

I need a good introduction to my paper on Freuds Psychoanylic theory and a good thesis...

I need a good introduction to my paper on Freuds Psychoanylic theory and a good thesis statement

1.i) Suppose that there are many different companies whose stocks have the same beta, say 1....

1.i) Suppose that there are many different companies whose stocks have the same beta, say 1. Can you form a portfolio to diversify the risk to get a lower beta? ii) Single factor model. Suppose that the single factor model for stocks A and B is estimated from excess returns as follows ReA = 3% + 0.7ReM + εA ReB = −2% + 1.2ReM + εB where, σM = 20% , R-squared of A is 20% and R-squared of B...

Question