Reala optioner: ett strategiskt verktyg
Independent thesis Advanced level (degree of Magister)Student thesisAlternative title
Real Options : A Strategic Tool (English)
Background: Businesses are traditionally valued with the so called Discounted Cash Flow-model. When valuing newly-started businesses, surrounded by high uncertainty, and whose capital mostly consists of unrealized business opportunities, the Discounted Cash Flow-model needs to be complemented if the total value of the business is to be captured. A valuation with the help of real options is capable of valuing these unrealized opportunities, which often exist in newly-started businesses. The unrealized opportunities are to be found in the business plan of the business, why this needs to be valued to capture the total value of a newly-started business.
Purpose: To demonstrate what the use of real options can result in when valuing businesses.
Realization: The fulfillment of the purpose was achieved by gathering information from a case company. Thereafter the case company was valued by putting the gathered information and made assumptions into suitable theoretical valuation models. Finally, an evaluation of the result was made.
Findings: A valuation model, which includes real options can give a higher value on the business, but to beable to use real options one need to undertake some assumptions. These make the real option value uncertain to some extent. Real options can however function as a strategic tool. Firstly, the estimated option values can serve as indicators as to which decision to undertake within the business. Secondly, using real options can change the business management’s way to look at what creates value.
Place, publisher, year, edition, pages
Ekonomiska institutionen , 2003. , 69 p.
Master Thesis in Business Administration (Magisteruppsats från Internationella ekonomprogrammet), 2003:09
Business and economics, real options, business valuation, business plan, medical device tecnology
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-1560OAI: oai:DiVA.org:liu-1560DiVA: diva2:18884