California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
by Sean Foote, Brian Busch
The Valuing a Microfinance Institution (Or Private Growth Enterprise) case study provides students with a scenario where they can learn how to evaluate and value a microfinance investment target in Africa amidst high uncertainty, limited information, and few (if any) usable comparable companies. Even though the case study focuses on an MFI, it can easily be applied to all private growth enterprises. Given high forecast growth, an uncertain exit, diverse competition, and no standard methodology, the protagonist of the case must choose between five different valuation techniques. The case explores the pros and cons of each methodology; students will choose a methodology, derive a valuation, discuss how the techniques lead to a wide range of values, and finally understand the difference between calculating a valuation and making an offer during a negotiation.
Pub Date: Dec 31, 2010
Discipline: Finance
Subjects: Accounting, Startup, Finance, Investments, Venture capital, Start-ups
Product #: B5770-PDF-ENG
Industry: Finance & insurance
Geography: Africa
Length: 22 page(s)
