Entrepreneurial Finance: Strategy, Valuation, and Deal Structure
Chapter 13. Valuation Creation and Contract Design
Learning Objectives
After reading this chapter you will be able to:
• Understand how and why staging and other real options affect the values of new venture financial claims
• Value the financial claims of a new venture using either discrete scenario analysis or simulation
• Use financial modeling and valuation techniques to study game theoretic issues that arise for the parties to a new venture
• Evaluate the effects of alternative financial contracts on the values of the financial interests of the entrepreneur and outside investors
• Know how to construct financial contracts to signal information and align incentives