Description
"https://i.ebayimg.com/thumbs/images/g/yuEAAeSwi81odsqB/s-l500.jpg" />
Item specifics
- Condition
- Brand
- Unbranded
- MPN
- Does not apply
- ISBN
- 9780471250487
- Book Title
- Dealmaking : Using Real Options and Monte Carlo Analysis
- Publisher
- Wiley & Sons, Incorporated, John
- Item Length
- 9.2 in
- Publication Year
- 2003
- Format
- Hardcover
- Language
- English
- Illustrator
- Yes
- Item Height
- 1 in
- Genre
- Mathematics, Law, Business & Economics
- Topic
- Intellectual Property / General, Probability & Statistics / Stochastic Processes, Negotiating
- Item Weight
- 22.1 Oz
- Item Width
- 6.2 in
- Number of Pages
- 320 Pages
Dealmaking Using Real Options and Monte Carlo Analysis – Hardcover – GOOD
About this product
Product Identifiers
Publisher
Wiley & Sons, Incorporated, John
ISBN-10
0471250481
ISBN-13
9780471250487
eBay Product ID (ePID)
2382946
Product Key Features
Book Title
Dealmaking : Using Real Options and Monte Carlo Analysis
Number of Pages
320 Pages
Language
English
Topic
Intellectual Property / General, Probability & Statistics / Stochastic Processes, Negotiating
Publication Year
2003
Illustrator
Yes
Genre
Mathematics, Law, Business & Economics
Format
Hardcover
Dimensions
Item Height
1 in
Item Weight
22.1 Oz
Item Length
9.2 in
Item Width
6.2 in
Additional Product Features
Intended Audience
LCCN
2002-155493
Dewey Edition
21
Dewey Decimal
658.4/052
Table Of Content
Chapter 1 Introduction 1 Why Another Negotiating Book? 1 Dealmaking(tm) 3 High Significance, High Ambiguity Contexts 4 The “So What?” Question 8 Valuation, Pricing, and Negotiation 8 Tangible and Intangible Content/Value and the New Economy 9 The I Dealmaking Process 10 Organization of the Book 13 Chapter 2 Negotiation People, Language, and Frameworks 15 Negotiation People 15 A Quest 21 The Nut, the Number, the Bogie, and the Toe Tag 23 Quantification, Rationality, and Hyperrationality 24 Chapter 3 The Box and the Wheelbarrow: What Am I Selling (or Buying)? 31 The Box 31 The Wheelbarrow 36 Dealmaking”s Spine 41 The Term Sheet 42 Methods and Tools 42 Chapter 4 Discounted Cash Flow Analysis and Introduction to Monte Carlo Modeling 45 Discounted Cash Flow Analysis 45 Scenario (DCF) Analysis 50 Monte Carlo Method: An Introduction 64 Closure and Application to Negotiation 72 Chapter 5 Monte Carlo Method 77 A Model Cash Flow Template 78 Income and Cash Flow Statements: 3M Example 79 Monte Carlo Assumption Tools 91 Uniform Distribution: Highest Uncertainty Between Certain Bounds 91 Triangular Distribution 94 The Normal Distribution 97 Other Distribution Functions 100 Monte Carlo Model of the DCF Template 102 Combined CAGR and Cost Ratio Uncertainty Distributions 102 Correlating Assumptions 105 Additional Assumption Distributions 107 Twentieth (and Other) Percentile Valuations 108 Comparison of Monte Carlo Results with DCF (RAHR) Method 114 Scenario Modeling in Monte Carlo 115 Monte Carlo Tools for Determining Variable Significance 120 Final Points on the Monte Carlo Model 121 Appendix 5A: Crystal Ball Report Corresponding to the Results Presented in Exhibit 5.15 for a Uniform Cost Distribution Assumption 126 Appendix 5B: Crystal Ball Report Corresponding to the Results Presented in Exhibit 5.16 for a Double-Humped Cost Distribution Assumption 135 Chapter 6 Introduction to Real Options 147 Perspective 1: Discounted Cash Flow (DCF) View of the Six-Scenario Opportunity 148 Perspective 2: Real Option View of the Six-Scenario Opportunity 151 Perspective 3: A Model for a Buyer”s Counteroffer 154 Black-Scholes Equation for Option Pricing 156 The Black-Scholes Equation Applied to an Option to a Share of Yahoo! 157 What Do Equations Represent? “What Is Truth?” 161 Using Black-Scholes for an Opportunity Valuation 167 Summary of Real Option Realities versus Black-Scholes 171 Chapter 7 Real Options Applied to Dealmaking 175 Beyond Black-Scholes 177 Emergence of Real Options Analysis 179 Introducing the Binomial Lattice for Real Options 186 Calculating Option Values from Binomial Matrices 192 Calculating Option Values Using Decisioneering”s Real Options Analysis Toolkit 196 Using Real Options Analysis Toolkit Software in Dealmaking 201 Calculating (or Estimating) Option Volatility 204 Calculating the Option Value of Options on Options 210 Conclusions and Observations 212 Appendix 7A: Real Options Equations 215 Chapter 8 Knowledge and Unertainty 219 Future Knowledge 219 Dealing with Uncertainty 221 Standards 226 What About Truth? 229 Chapter 9 Deal Pricing 233 Simple Pricing 233 Box Pricing 235 Wheelbarrow Pricing 236 Total Cash Payment 236 Cash When 239 Cash Maybe 239 Cash As 240 Cash Substitutes 240 Term Sheets 241 Chapter 10 Negotiation Perspectives and Dynamics 243 Negotiation Perspectives 243 Negotiating Sequencing 246 Issue Explosion 249 Negotiating Values 252 Deal/Agreement Complexity 252 Chapter 11 Plan B 255 Auctions and Betrothals 255 Plan B Analysis and Tools 257 Plan B Implementation 265 Plan B Caution 266 Plan B from the Buyer”s Perspective 267 Plan B and Life 267 Chapter 12 Conclusion 273 In Theory, In Practice 273 Value Creation by Dealmaking 274 A Final (True) Story 278 Bibliography 281 Index 283
Synopsis
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., 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., 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., 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., An Innovative, Tool-Based Process for Creating More Rational, Creative, and Mutually Beneficial Deal Structures and ValuationsReal 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 projectEnsure that both sides in every negotiation work from similar valuation terms and processesDevelop and implement efficient strategies for bringing negotiations to closureIn 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.
LC Classification Number
HD58.6.R392 2003
Price : 11.80
Ends on : N/A
View on eBay
