Uploaded April 2025 | Updated September 2026, 1 week ago

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In this session, we started by looking at the challenges of valuing private-to-private transactions, where the buyer of a private business is undiversified and cares deeply about illiquidity, and how the values are depressed as a consequence. We then drew a contrast to the same company being valued by a public company, and argued that this should lead to private businesses increasingly become parts of public companies or going public themselves. In the final section of the class, we looked at valuing/pricing IPOs, and how to deal with offer proceeds from the IPO and the IPO process itself.

Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/pvtcotest.pdf
Slides: nyu.box.com/s/7b3ril0e7dh7vpuqtdhygh9xw2u13ize
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session23Ftest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session23Fsoln.pdf