First Advisor

Lihong Qian

Date of Award

2017

Document Type

Thesis

Degree Name

Bachelor of Science (B.S.) in Business Administration: Finance and University Honors

Department

Business Administration

Subjects

Small business -- Valuation -- Study and teaching (Higher), Small business -- Finance, Business enterprises -- Valuation

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.

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In Copyright. URI: http://rightsstatements.org/vocab/InC/1.0/ This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).

Persistent Identifier

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

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