Dealmaking: Using Real Options and Monte Carlo Analysis

Richard Razgaitis

Couverture rigide

ISBN 10 : 0471250481 ISBN 13 : 9780471250487

Editeur : John Wiley & Sons, 2003

Dealmaking Applying practical tools to the volatile process of negotiating Prognosticators apply Monte Carlo Analysis (MCA) to determine the likelihood and significance of a complete range of future outcomes; Real Options Analysis (ROA) can then be employed to develop pricing structures, or options, for such outcomes.

Quatrième de couverture :

An Innovative, Tool–Based Process for Creating More Rational, Creative, and Mutually Beneficial Deal Structures and Valuations

Real Options Analysis (ROA) and Monte Carlo Analysis (MCA) are two of today’s most significant tools in the valuation and negotiation of high–potential–value, high–ambiguity deals. Dealmaking Using Real Options and Monte Carlo Analysis outlines a new approach for creating flexible, practical valuation models by combining ROA and MCA into one innovative and proven successful process.

This results–based book takes you beyond uneven, rule–of–thumb negotiation tactics and strategies to discuss how you can:

• Accurately evaluate the potential costs of going forward with or scuttling a business project
• Ensure that both sides in every negotiation work from similar valuation terms and processes
• Develop and implement efficient strategies for bringing negotiations to closure

In preparing for any business negotiation, the goal is to identify opportunity and characterize risk; during the actual negotiation, the goal is to capture value while arriving at terms that are favorable to everyone. Dealmaking Using Real Options and Monte Carlo Analysis introduces a process for achieving both goals, by focusing on practical tools and procedures that take into account the full range of opportunities and lead all sides to the identification and selection of optimal choices.

Présentation de l'éditeur :

Applying practical tools to the volatile process of negotiating
Prognosticators apply Monte Carlo Analysis (MCA) to determine the likelihood and significance of a complete range of future outcomes; Real Options Analysis (ROA) can then be employed to develop pricing structures, or options, for such outcomes. Richard Razgaitis′ Dealmaking shows readers how to apply these powerful valuation tools to a variety of business processes, such as pricing, negotiating, or living with a "deal," be it a technology license, and R&D partnership, or an outright sales agreement. Dealmaking distinguishes itself from other negotiating guides not only by treating negotiations as an increasingly common situation, but also by presenting a tool–based approach that creates flexible, practical valuation models. This forward–thinking guide includes a variety of checklists, case studies, and a CD–ROM with the appropriate software.
Richard Razgaitis (Bloomsbury, NJ) is a Managing Director at InteCap, Inc. He has over twenty–five years of experience working with the development, commercialization, and strategic management of technology, seventeen of which have been spent in the commercialization of intellectual property.