Valuing high growth potential companies: an international comparison of practices by leading venture capitalists and underwriters
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1 septembre 2001
- handle: 10670/1.dz9x6q
- hal: hal-02311634
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Capitalization (Finance) Appraisal Property--Valuation Economic valuationCiter ce document
Rémy Paliard et al., « Valuing high growth potential companies: an international comparison of practices by leading venture capitalists and underwriters », HAL-SHS : droit et gestion, ID : 10670/1.dz9x6q
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Résumé
This paper offers the first international comparison (France, Great Britain, United States, and Canada) of the processes used by venture capitalists and underwriters in the valuations of high growth potential companies, focussing in particular on the valuation processes and techniques used and the development and dissemination of valuation-specific knowledge. Differences between two groups and their key determinants are highlighted and tested using a sample of 174 valuation cases across 42 venture capital and 40 underwriting firms. The results support a large reliance on relatively simple valuation methods supported by extensive due diligences, reinforcing the important of negotiations and deal-making in the ultimate valuation results.