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

John D. Finnerty; Douglas R. Emery

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

John D. Finnerty, Douglas R. Emery

Finance

Research output: Contribution to journal › Article › peer-review

7 Scopus citations

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 language	English (US)
Pages (from-to)	91-99
Number of pages	9
Journal	Financial Management
Volume	33
Issue number	1
State	Published - Mar 1 2004

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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

Abstract

ASJC Scopus subject areas

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