Walden University College of Management and Technology This is to certify that the doctoral dissertation by Anthony Okafor has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Mohammad Sharifzadeh, Committee Chairperson, Management Faculty Dr. Javier Fadul, Committee Member, Management Faculty Dr. Craig Barton, University Reviewer, Management Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2018 Valuing high-tech startups using traditional valuation models has continued to pose valuation challenges to entrepreneurs, investors as well as financial analysts. The complications in valuing startups are heightened by the variations in valuation methodologies and the absence of operational data. Identifying the appropriate methodology for valuing startups is crucial to establishing value and a prerequisite for accessing funding through mergers or acquisitions. The purpose of this study was to examine the effect of valuation methods on the likelihood of mergers and acquisitions of high-tech startup organizations in the Nigerian capital market. The theoretical underpinning of this study is rooted in valuation theory and mergers and acquisitions theories. The extent to which valuation methods impact the likelihood of securing funds through mergers and acquisitions was the overarching research question. Random sampling was used to obtain records of valuation methods and mergers and acquisitions that occurred between 2006 and 2016 from companies in the high-tech sector. A binary logistic regression model was used to test the impact of valuation methods on the likelihood of mergers and acquisitions of high-tech startups. The impact of valuation methods on the likelihood of mergers and acquisitions was found to be not statistically significant. The participants indicated a preference for specific valuation methods during negotiations for mergers and acquisitions. The findings have implications for positive social change via a reduction in the unemployment rate by encouraging startups with their innovation and entrepreneurship. This should help to facilitate the emergence of sound valuation methods for valuing high-tech startups in the Nigerian capital market.

This thesis defines the methods of building price determination. In my work I tried to explain the concepts related to budgeting and valuation, to describe and use methods for determining specific prices for my chosen family house in the town Bílina. The first part is used to get acquainted with the terminology related to the creation of the budget and the use of valuation methods in construction. I also tried to describe the principles and rules of budgeting and specific valuation methods, which I used on my chosen family house. The second part contains a practical solution to the problem. First, I create a budget in the budget program BUILDpowerS and then, here I use valuation methods and create prices for a family house. Finally, I compared the prices, which were created using valuation methods and the created budget, evaluated and its subsequent use.

Rapporten undersöker hur de unika egenskaperna på småhusfastigheter värderas när det är svårt att hitta likartade jämförelseobjekt på samma delmarknad. Det som skiljer det här arbetet från andra arbeten är att det diskuteras kring hur fastighetsvärderaren sätter ett värde på de unika detaljerna i marknadsvärdesbedömningen. För att samla in data till arbetet har det använts en kvalitativ metod som avser att klargöra hur undersökningarna går till för att uppfylla syftet.  Det finns några olika värderingsmetoder som enligt teorin används som grund av alla värderare, i olika sammanhang för att uppskatta marknadsvärde. En stor skillnad mellan teorin och praktiken som framkommer är att värderarens erfarenhet och känsla för värdebärande faktorer verkar ha en stor del i bedömningen, vilket kan vara positivt och ge ett bättre marknadsvärde men samtidigt kan vara negativt eftersom det inte är så sakligt. Vissa unika egenskaper kan värderas med produktionskostnadsmetoden och regressionsanalyser under vissa förutsättningar, för att ta fram värde på de unika egenskaperna. Om bedömningsprocessen inte är korrekt eller om värderaren har ont om tid kan det leda till mindre trovärdiga bedömningar och i slutändan en lägre trovärdighet för branschen, detta kan tänkas bli än värre om argumenten i värdeutlåtandet uppfattas som svaga. Det empiriska materialet har erhållits genom fem intervjuer för att kunna koppla teorin till verkligheten. De fem respondenterna diskuterade kring värdering av unika egenskaper från flera olika perspektiv, det konstaterades då att det finns vissa skillnader men också stora likheter i de olika arbetssätt som de tillämpar. Arbetet visar också att det finns en hel del skillnader mellan fastighetsvärdering i teorin och praktiken, konsekvenserna av detta är ett intressant område att forska vidare på. / This thesis will examine how unique characteristics of properties are being valued when it is difficult to find proper comparison objects on the same submarket. What differs this study from studies being already made is primarily the focus on unique characteristics in market value estimation. To collect data for this work, a qualitative method has been used. The method intends to clarify how the work should be executed to fulfill the purpose.  There are theoretically a couple of valuation methods used as a base by all appraisers, in different situations to estimate market value of properties. A big difference between theory and practice that is shown is that the appraiser’s experience and sense för value-bearing factors seem to have a large part in the assessment. This can be positive and provide a more precise market value, but it is also negative since it lacks factual base. Production cost method and regression analysis can be used to estimate the increase of value for unique characteristics under certain specific conditions.  If the assignments process is not correct or if the appraiser does not have a lot of time. This can lead to less reliable assessments and ultimately a lower credibility for the industry, especially if the arguments in the value statement are perceived as weak. The empiric material was collected through five interviews, to be able to establish a connection between theory and reality. The five respondents were discussing valuations of unique characteristics from several different perspectives, and it was found that there were some differences between the appraisers and how they work, but also many important similarities in the workflow and the methods being applied. This work will show that there are actually a number of differences between valuation in theory and in practice. The consequences of that are discussed a little bit but would be an interesting area for further studies.

Studentbostäder är en typ av kategoriboende som har egenskaper som skiljer sig från traditionella hyresbostäder. Därför är det intressant att undersöka hur studentbostadshus fastighetsspecifika faktorer påverkar marknadsvärdesbedömningen. Syftet med uppsatsen är att undersöka hur fastighetsvärderare bedömer osäkerheten vid värdering av studentbostadshus och hur den hanteras. För att undersöka detta har en kvalitativ metod använts. Åtta intervjuer har genomförts med sex fastighetsvärderare samt tre andra kunniga inom studentbostadsmarknaden i kombination med en litteraturstudie. Studien har visat att osäkerheten bedöms uppstå vid antagandet av direktavkastningskravet. Direktavkastningskravet härleds från marknaden genom att studera förhållandet mellan driftnetto och pris. Då studentbostäder är ett kategoriboende som utgör en illikvid delmarknad är det osäkert vad direktavkastningskravet bör sättas till då det saknas jämförbara objekt i brist på transaktioner. Därav baseras direktavkastningskravet på marknaden för vanliga hyresbostadshus vilket leder till att värderaren behöver justera direktavkastningskravet för att det ska bli applicerbart på studentbostadsmarknaden. I denna justering uppstår en ökad osäkerhet. Antagandet om direktavkastningskravet påverkas av fastighetens läge, möjligheten till alternativ användning, drift- och underhållskostnader, vakansgrad samt om det är en fastighet med korridorsrum eller lägenheter. Vidare används direktavkastningskravet för att hantera osäkerheten. Genom att höja direktavkastningskravet kompenserar värderaren för den ökade osäkerheten i värderingen. / Student housing is a real estate type that has attributes that differ from traditional rental housing. Therefore, it is interesting to investigate how property-specific factors attached to the student housing buildings affect the market value of the property. The purpose of the thesis is to investigate how real estate valuers assess the uncertainty when valuing student housing and how it is managed. To investigate this, a qualitative method has been used. Eight interviews were held with six real estate valuers and three other knowledgeable people in the student housing market in combination with a literature study. The study has shown that the uncertainty in the valuation emerges because of the difficulty in estimating the exit yield. The exit yield is derived from the market by studying the relationship between net operating income and price. As student housing is unique and constitutes an illiquid submarket, it is uncertain what the exit yield should be, as there are no comparable objects because of the lack of transactions. As a result, the exit yield is derived from the market of rental housing buildings, which means that the valuer needs to adjust the exit yield to become applicable on the student housing market. When adjusting the exit yield an extra uncertainty emerges. The assumption about the exit yield is affected by the property's location, the possibility of alternative use, operating and maintenance costs, vacancy rate and whether it is a property with corridor rooms or apartments. Furthermore, the exit yield is used to manage the uncertainty. By increasing the exit yield, the valuer compensates for the increased uncertainty in the valuation.

The purpose of this study is to examine the most suitable valuation methods for Swedish property companies when appraising specialty properties, and to analyze the uncertainties associated with valuing such properties and the strategies used to mitigate these uncertainties. The study is based on a combination of literature reviews, theoretical frameworks, and 15 semi-structured interviews with property valuers and experts in the field. Previous research has explored the most appropriate valuation methods for specialty properties based on value principles. Other research has explored property valuation on a global scale to identify applicable methods. This study specifically focuses on the valuation methods most commonly used in the Swedish market, their associated uncertainties, and how companies manage these uncertainties. A qualitative research method is employed to gain a deeper understanding of Swedish property companies' perspectives on these issues. The 15 semi-structured interviews primarily involved companies of various sizes acting as both consultants and owners, along with two interviews with experts in property valuation from KTH and Lund University. This approach facilitated a comprehensive investigation and identification of differences and similarities among the respondents. The results indicate that the income approach and the sales comparison approach are widely used as valuation methods. There is a greater variation in perceptions of uncertainties, with particular emphasis placed on the stability of tenants and the uncertainty surrounding lease terminations, given that the properties are tailored to specific business needs. Some respondents also point to the lack of comparable properties and a limited transaction market for the segment as contributing factors to valuation uncertainties. Finally, the study presents companies' strategies for minimizing uncertainties, with a common theme being thorough analysis of tenants and lease agreements. Companies emphasize the importance of internal databases and continuous updating of knowledge in the field to minimize uncertainties. One difference among companies is how they present uncertainties in their valuation reports. Some companies provide reports with a risk range, while others believe that more consideration should be given to uncertainties to minimize uncertainty in valuation. They highlight that a descriptive analysis of how changes in required rates of return and net rental income can affect valuation may be significant, especially for investors. / Syftet med denna studie är att undersöka vilka värderingsmetoder som är mest lämpliga för svenska fastighetsbolag när de ska värdera specialfastigheter, samt att analysera de osäkerheter som är förknippade med värderingen av sådana fastigheter och vilka strategier som används för att hantera dessa osäkerheter. Studien bygger på en kombination av litteraturstudier, teoretiska ramverk och 15 semistrukturerade intervjuer med fastighetsvärderare och experter inom området. Tidigare forskning har undersökt de mest lämpliga värderingsmetoderna för specialfastigheter baserat på värdeprinciper. Annan forskning har utforskat fastighetsvärdering på en global nivå för att identifiera tillämpliga metoder. Denna studie fokuserar specifikt på vilka värderingsmetoder som används mest på den svenska marknaden, dess medföljande osäkerheter och hur företagen hanterar dessa osäkerheter. En kvalitativ forskningsmetod används för att få en djupare förståelse av svenska fastighetsbolagens perspektiv på dessa frågor. De 15 semistrukturerade intervjuerna omfattade främst företag av olika storlek som agerar både som konsulter och ägare, samt två intervjuer med experter inom fastighetsvärdering från KTH och Lunds Universitet. Detta tillvägagångssätt möjliggjorde en omfattande undersökning och identifiering av skillnader och likheter mellan respondenterna. Resultaten visar att avkastningsmetoden och ortsprismetoden används i stor utsträckning som värderingsmetoder. Det finns en större variation i synen på osäkerheter, där framför allt hyresgästens stabilitet och osäkerheten kring uppsägning av hyresavtal får stor vikt, då fastigheten är utformad för specifika verksamheters behov. Vissa respondenter pekar också på bristen på jämförbara objekt och en begränsad transaktionsmarknad för segmentet som bidragande faktorer till osäkerheter vid värdering. Slutligen presenteras företagens strategier för att minimera osäkerheter, där en gemensam nämnare är noggrann analys av hyresgäster och hyresavtal. Företagen betonar vikten av interna databaser och ständig uppdatering av kunskap inom området för att minimera osäkerheter. En skillnad bland företagen är hur de presenterar osäkerheter i sina värderingsutlåtanden. Vissa företag presenterar utlåtanden med ett riskintervall, medan andra anser att mer hänsyn behöver tas till osäkerheter för att minimera osäkerheten i värderingen. De pekar på att en deskriptiv analys av hur förändringar i krav på avkastning och netto hyresintäkter kan påverka värderingen kan vara av betydelse, särskilt för investerare.

Submitted by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-09-17T14:57:23Z No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) / Approved for entry into archive by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-09-17T14:58:10Z (GMT) No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) / Made available in DSpace on 2018-09-17T14:58:10Z (GMT). No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) Previous issue date: 2018-07-09 / The process of determining the worth of a company (valuation) aims to calculate the fair value using several methodologies. Considering that, the value of a company is a result of its potential production; valuation methods should measure the capability to generate future benefits from the company's assets, which may be tangible (machinery, stock, etc.) and intangible (brands, the quality of its administration, strategy, etc.). Intangible assets, besides being more difficult to measure, are fundamental to the organization, contributing to the company's value. Several methods have been identified, making more difficult to choose the method to be used. Thus, the present study sought to analyze the main valuation methods and their applications, both those traditionally used and those that used for intangible assets. It was also observed if the governance of the company and involvement in fraud and corruption are considered during the evaluation. The identification of the practices of using which evaluation methods are most appropriate to each type of organization was elaborated from the data collection through the application of a structured questionnaire with professionals of the area and the evaluation of the results by a discussion group composed by specialists. The research findings can contribute to the choice of methods for evaluating companies, depending on their segment, size and concentration of assets: tangible and intangible. The results of this work demonstrate that, despite the existence of several methods of valuation of companies and intangible, the cash flow discounted method is the most used, but can also be complemented by other methods. / O processo de avaliação de uma empresa (valuation) tem como objetivo calcular o valor justo (fair value), sendo que esse cálculo pode ser realizado mediante a utilização de diversas metodologias. Considerando que o valor de uma empresa é representado pelo o que poderá produzir, os métodos de avaliação devem, em princípio, mensurar a capacidade de geração de benefícios futuros, originados dos ativos da empresa, que podem estar sob a forma de ativos tangíveis (imóveis, máquinas, estoques, etc.) e intangíveis (marcas, a qualidade de sua administração, sua estratégia, etc.). Os ativos intangíveis além de apresentarem maior dificuldade de serem mensurados, possuem importância fundamental na medida em que seu adequado gerenciamento gera vantagens competitivas à organização, contribuindo para a alavancagem do valor da empresa. Foram identificados diversos métodos, o que dificulta a escolha do procedimento a ser empregado. Assim, o presente estudo buscou verificar a aplicação dos principais métodos de avaliação, tanto os tradicionalmente utilizados, como os que tratam de avalição dos ativos intangíveis. Procurou-se observar se a governança da empresa e envolvimento em fraudes e corrupção são consideradas quando da avaliação. A identificação das práticas de utilização de quais métodos de avaliação são mais adequados a cada tipo de organização foi elaborado a partir da coleta de dados mediante a aplicação de um questionário estruturado com profissionais da área e da avaliação dos resultados por um grupo de discussão composto por especialistas. Os achados da pesquisa podem contribuir para a escolha de métodos para avaliações de empresas, em função do seu segmento, porte e concentração de ativos: tangíveis e intangíveis. Os resultados deste trabalho demonstram que, apesar da existência de diversos métodos de avaliação de empresas e de intangíveis, o método do fluxo de caixa descontado é o de maior utilização, podendo, porém, ser complementado por outros métodos.

Este documento tiene como primer objetivo mostrar los diferentes métodos de valoración de empresas estudiados en las últimas décadas. No obstante, el trabajo profundiza en la valoración de pequeñas empresas como tema central, debido a que hasta la actualidad no se las ha investigado con el mismo interés que a empresas corporativas, lo que pone en evidencia una falta de consenso. Así, el segundo objetivo es ofrecer al lector una fuente de información, a manera de compendio inicial, que motive a investigar el tema, realizar estudios específicos, servir de materia de tesis académicas, entre otras contribuciones. El primer capítulo de este trabajo aborda el tema partiendo de la definición del concepto de valor, y sustenta la diferencia entre valor y precio. Asimismo, en él se realiza una reseña de la evolución del estudio de valoración de empresas, se explica qué es una pequeña empresa en el marco nacional e internacional, y, finalmente, se aborda la valoración de pequeñas empresas en específico. Por su parte, el segundo capítulo describe los métodos de valoración de empresas más utilizados y aceptados, y presenta sus ecuaciones y guía detallada de uso. El tercer capítulo expone errores encontrados en valoración de empresas; el cuarto capítulo describe seis metodologías de valoración de pequeñas empresas, y presenta sus respectivas ecuaciones y los pasos a seguir para su uso. Finalmente, el quinto capítulo se enfoca en un tema de similar importancia, la estimación del costo de capital en pequeñas empresas, el cual genera, inclusive, mayor controversia. / The first objective of this document is to show the different Company valuation methods studied in the last decades. However, the work looks into the valuation of small business, as a central topic, because until now they have not been investigated with the same interest than the Corporative Companies, which evidences a lack of consensus. Thus, the second objective is to offer a source of information to the reader, as an initial summary, that motivates to investigate the topic, do specific studies, serve as a topic for Academic Thesis, among other contributions. The first chapter of this paper approaches the topic starting from the definition of the concept of the value and supports the difference between value and price. Moreover, there is an outline of the evolution of the study of valuation of Companies, it is explained what is a small business in the national and international framework and, finally, the valuation of specific small business is approached. On its part, the second chapter describes the most used and accepted companies’ valuation methods and presents its equations and detailed user guide. The third chapter shows mistakes found in companies’ valuation; the fourth chapter describes six methodologies of the valuation of small business and shows its respective equations and the steps to follow for its use. Finally, the last chapter focuses on a topic of similar importance, the estimation of the capital cost in small companies that generates, even, more controversy. / Trabajo de Suficiencia Profesional

This study examines privatization and valuation processes in the context of privatized state owned enterprises in Tanzania. It investigates the implementation of the privatization process and valuation methodology in a developing economy where the market system and its associated institutions are not fully developed. The objective of this study is twofold, first to investigate how the privatization process was carried-out towards the stated objectives and second to find out how asset valuation was carried-out in assisting decision-making at the ‘Presidential Parastatal Sector Reform Commission’ (PSRC). As a means to achieve the above objective, the study traces five interrelated aspects in the privatization process. The tracing attempted to find out whether or not the five aspects proceeded in ways that enabled attainment of the stated objectives. The five interrelated aspects included, Formulation of privatization strategy; Valuation methods; Valuation error; Buyers of State owned enterprises and Developments after privatization. The study found that strategy formulation being undertaken by PSRC did not promote higher competition, higher prices and higher government revenue; the present Valuation methodology as used by the Valuation firms engaged by PSRC did not improve certainty in the determination of reserve price; further that valuation estimates were not good proxies of sale prices; the issue of wider ownership participation by the people was far from being achieved; And that follow-up on changes of ownership and changes in the physical developments was lacking. Both privatization and valuation stand to yield expected results where the market system and its institutions are well developed and are functioning properly. Had there been reasonable and basic preparations prior to take off, privatization process in Tanzania could have been carried out in better ways and yielded better results than it is now / QC 20100915

Baigiamasis magistro darbas skirtas tradiciniams ir netradiciniams įmonių veiklos finansinio vertinimo principams ir metodams išnagrinėti bei praktiškai pritaikyti AB „Statybos įmonė“ pavyzdžiu. Teorinėje darbo dalyje atskleidžiama įmonių finansų analizės esmė ir reikšmė, finansų analizės objektas, uždaviniai ir informacijos šaltiniai, pateikiamos įmonių finansų analizės rūšys. Taip pat nagrinėjami bankroto įvertinimo metodai bei įmonių veiklos perspektyvų prognozavimas. Analizuojamos naujosios įmonių veiklos vertinimo sistemos ir palyginamos su tradiciniais vertinimo metodais. Tyrime atliekama AB „Statybos įmonė“ finansinių ataskaitų horizontalioji ir vertikalioji analizė, įmonė vertinima tradiciniais ir netradiciniais metodais, atliekama bankroto diagnostika, parengiamos prognostinės ataskaitos. Išnagrinėjus teorinius ir praktinius įmonių veiklos finansinio įvertinimo aspektus, pateikiamos darbo išvados ir pasiūlymai. / Master thesis intended to analyze traditional and non-traditional financial valuation principles and methods of companies performance and the practical application to AB „Statybos įmonė“. In the theoretical part of thesis there are discribed and presented the essence and meaning, the object, tasks, information source and types of financial analysis. The methods for evaluation of bankruptcy and companies outlook prediction are also discussed. Moreover new companies performance valuation systems are analysed and compared with traditional valuation methods. In the research on AB „Statybos įmonė“ the horizontal and vertical analysis of financial statements are carried out. Furthermore the company is valuated by traditional and non-traditional methods, the diagnosis of bankruptcy and predictive reports are carried out. After examination of theoretical and practical aspects of companies performance financial valuation the conclusions and recommendations are made.

One of the important operational and in some cases, also strategic business decisions, is in respect of the investment of funds. Although there are a number of assets to invest in, two particular popular investment asset classes are land and/or property. Land however, is becoming a very scarce resource. It can be argued that many companies investing in the property sectors' main income is generated from the sale of land. A new way of gaining a sustainable income stream is followed. This is done by investing in different kinds of property development projects. One of the problems that companies face is to determine whether a property development project is a good investment, meaning that it will generate sustainable and acceptable profits in the long term. Companies evaluate prospective investment opportunities by assessing whether the expected return, adjusted for project risk, exceeds the company?s required return. Different impact parameters exist and were identified in the study. Valuation methods used in determining the overall feasibility were discussed and evaluated to see the impact on the property development project. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.