Date of Award

2017

Document Type

Thesis

Department

Business Administration

First Advisor

Lihong Qian

Subjects

Small business -- Valuation -- Methods, Business enterprises -- Valuation, Small business -- Valuation -- Study and teaching

DOI

10.15760/honors.427

Abstract

This paper's purpose is to review existing literature from an undergraduate perspective on the process of small business valuation and the differences between the textbook valuation methods covered in typical undergraduate and graduate finance courses. Potential investors or buyers likely have more financial expertise and access to resources, so this information is largely geared towards owners of businesses with less than 20 employees who are interested in valuing their own business. To that end, a simple model for determining the discount rate in DCF analysis is proposed. A live example of adjustments from textbook methods also provides evidence of the need for further work in this area.

Comments

An undergraduate honors thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Science in University Honors and Business Administration: Finance.

Persistent Identifier

http://archives.pdx.edu/ds/psu/20433

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