Valuation and Return Measurement in Private Equity: An Overview Case Solution
While in theory not challenging, the large variety of useful techniques-- typically created to generate a particular result-- tend to be puzzling so an outsider or brand-new trainee of the field. This newspaper does not try to methodically check out all the variants that present in the market place however rather to offer an introduction of the most typical techniques, feature their weak points and strengths and indicating significant alternative techniques.
The issue of valuation and size of return (i.e. financial investment success) goes through the entire life process of private equity (PE). While the appraisal part remains in numerous methods much like other direct financial investment techniques, the measuring of profits in private equity is an infamously challenging company, primarily due to the lack of a transparent and reliable market for the property class.
published: 25 May 2011
This is just an excerpt. This case is about Decision Sciences