Introduction to Valuation Chris Young, Ph.D.

Transcript:Introduction to Valuation Chris Young, Ph.D.:
Introduction to Valuation Chris Young, Ph.D. Agenda 2 Quick Introduction What is a Valuation? What are the major components of a Valuation? Simple exercise – Mining Business (Opinion of Value) Q&A Economic, Strategic and Forensic Consulting Firm Commercial Economic Damages Employment Matters Financial Forensics Economic Studies, Social Science FINRA Related Personal Injury and Wrongful Death Matrimonial and Divorce Services Valuations and Corporate Finance Services Litigation, Estate and Tax, Corporate Finance Matters 3 Estate and Tax Valuations 4 Team Success Testified and settled $1.7 billion Breach of Contract Case Testified and Settled $120 million Shareholder Oppression Case Verdict of $27 million + Shareholder Oppression Claim Verdict of $30m+ Securities Fraud/RICO Case Been on the opposite side of the majors – Analysis Group, BCG, EY, PWC, Brattle Group Been on the opposite side of the mid tier – Wiss, Withum, Eisner, Cipolla Recent Activity 5 Speaker Chris Young Partner – Red Maple Economics Former Partner and Head of Valuation and Commercial Damages – Sobel & Co. Assistant Professor at Rutgers University, School of Business Previously Professor at Seton Hall University, Stillman School of Business Previously Managing Director of M&A at a mid-market investment bank Previously managed a venture capital fund, CFO of a $500m media company, head of strategy and M&A for the WSJ/Dow Jones PhD, MBA – Rutgers University, presently studying Behavioral Economics (MA) – Harvard University 6 What is a Valuation? 7 Lets begin with a simple exercise On a piece of paper – write down what you value the most in the entire world [1 min] 8 Lets begin with a simple exercise On a piece of paper – now write down why you value this thing, object, person, etc… [1 min] 9 Lets begin with a simple exercise On a piece of paper – what did you give up to obtain that value? [1 min] 10 Valuation Defined The act or process of making a judgment about the price or value of something. The estimated value of something. THIS IS ANYTHING THAT HAS VALUE 11 What is a valuation that is accepted by the Court, IRS, strategic partner? 12 One that has a fair level of economic certainty Act or Process = Must be recognized in the field [academic community, professional use and acceptance] Judgement = Based on economic certainty [empirical data, observation, normative data, expert opinion, court advice, IRS advice] 13 Value in Use = specific to