Valuing an Entrepreneurial Enterprise

ISBN-13: 9780199730377 / Angielski / Twarda / 2012 / 192 str.

David B. Audretsch

Opis

Entrepreneurs generally lack the marketing capabilities necessary to bring their new product to market. To engage the resources required to do this, they must somehow place a value on the enterprise. However, all of the methods of valuation currently available are based on the use of historical or current revenues, and therefore are not applicable to an entrepreneurial enterprise with a first-time product. In Valuing an Entrepreneurial Enterprise, Audretsch and Link present a valuation method uniquely tailored to emerging technology-based ventures that have no revenue history to lean on. Unlike many traditional methods, theirs does not take into account the track record of companies and products similar to that being valuated. Instead, it draws on economic theory to formulate a solution to the problem.

The book develops conceptual ground, including trends in entrepreneurship, models of innovation, and the economics of standards and entrepreneurship policy. The authors review the traditional valuation methods and illustrate them numerically with case studies to show how the traditional approach produces an incorrect valuation. The core of the book presents the new methodology and demonstrates how it avoids the pitfalls of past approaches. The authors also show how public policy on technology and infrastructure changes valuations of start-up firms in areas such as stem-cell products and renewable fuels projects.

Valuing an Entrepreneurial Enterprise will serve as a valuable resource for advanced students, economists, financial planners, and valuators interested in new valuation methods and the theory behind them, as well as those interested in entrepreneurship.

Recenzje

Entrepreneurship has become a crowded space today with scores of new books published each year. Many of these are just run-of-the-mill projects repeating what we already know. When a new book comes along that offers a fresh insight into a still under-researched area it is worth getting excited about. Valuing an Entrepreneurial Enterprise by Audretsch and Link, two of the leading scholars in the field, is just such a book. The book is about valuating a high technology firm (what is it worth) and they suggest that we should focus on complementary technologies not substitute products. In other words, the authors suggest that the existing yardsticks are not a good measure and may be misleading at best. They offer a new and novel approach for valuating an entrepreneurial venture.

O autorze

David B. Audretsch is Distinguished Professor, Ameritech Chair of Economic Development, and Director of the Institute for Development Strategies at Indiana University. Albert N. Link is Professor of Economics at the University of North Carolina at Greensboro and Editor-in-Chief of the Journal of Technology Transfer.