The Value of Corporate Control and the Comparable Company Method of Valuation

John D. Finnerty, Douglas Emery

Research output: Contribution to journal › Article

7 Citations (Scopus)

Abstract

The comparable company method of valuation does not account for the value of corporate control. Therefore, the method must be adjusted if it is being used to value a company involved in a change-of-control transaction. We provide two alternative ways to adjust the comparable company method for the value of corporate control. The efficacy of the adjusted comparable company method is confirmed on 51 highly leveraged transactions (HLTs) from Kaplan and Ruback (1995).

Original languageEnglish (US)
Pages (from-to)91-99
Number of pages9
JournalFinancial Management
Volume33
Issue number1
StatePublished - Mar 1 2004

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Corporate control
Efficacy

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

The Value of Corporate Control and the Comparable Company Method of Valuation. / Finnerty, John D.; Emery, Douglas.

In: Financial Management, Vol. 33, No. 1, 01.03.2004, p. 91-99.

Research output: Contribution to journal › Article

Finnerty, JD & Emery, D 2004, 'The Value of Corporate Control and the Comparable Company Method of Valuation', Financial Management, vol. 33, no. 1, pp. 91-99.
Finnerty JD, Emery D. The Value of Corporate Control and the Comparable Company Method of Valuation. Financial Management. 2004 Mar 1;33(1):91-99.
Finnerty, John D. ; Emery, Douglas. / The Value of Corporate Control and the Comparable Company Method of Valuation. In: Financial Management. 2004 ; Vol. 33, No. 1. pp. 91-99.
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