| HBS Case Collection
(Revised from original 2001 version)
Note on Valuing Private Businesses
This case provides a brief overview of valuation for owners of closely held companies. The focus is on a comparable transactions approach, although rules of thumb and discounted cash flow are mentioned. Earnings multiples and their drivers are discussed. It uses company example and transaction data on private deals as an exercise in screening for comparable companies and valuation based on multiples. It includes a three-page bibliography with references to further sources on valuation methods, private transaction data, financial databases for company screening, and professional advisors from appraisal and valuation communities.
Keywords: Earnings Management;
Data and Data Sets;
Crane, Dwight B., and Indra Reinbergs. "Note on Valuing Private Businesses." Harvard Business School Background Note 201-060, April 2001. (Revised from original February 2001 version.)