Dealmaking Using Real Options: Using Real Options and Monte Carlo Analysis (Wiley Finance) - Hardcover

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RICHARD RAZGAITIS is a managing director at InteCap, Inc. A recognized leader in the field of licensing and valuation, he has over twenty-five years of experience working with the development, commercialization, and strategic management of technology, seventeen of which have involved the commercialization of intellectual property.

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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.

Aus dem Klappentext

"The underlying purpose of this book is to empower negotiation for business-to-business dealmaking of business opportunities using analytical tools and planning procedures. The focus on practical tools and procedures that can be justifiably used in a business context distinguishes the book from a vast catalog of other negotiation books."
?From Chapter 1

Business negotiation is often characterized as a "take it or leave it" battle of wits between buyer and seller. But it is much, much more. In reality, business negotiation involves two parties?perhaps business adversaries or perhaps business allies?faced with reaching a reasonable value-enhancing agreement from a range of possible options.

Dealmaking Using Real Options and Monte Carlo Analysis details how you can employ two of today?s most powerful decision-making tools?Real Options Analysis (ROA) and Monte Carlo Analysis (MCA)?to effectively prepare for every negotiation by comprehensively and rationally representing myriad possible futures. This uniquely hands-on book outlines a step-by-step process for determining what you want, learning why it is reasonable to hold such a view, and successfully communicating that knowledge to both internal stakeholders and those on the other side of the negotiation.

Richard Razgaitis, an influential thought leader in the field of licensing and valuation, walks you through the tools and approaches of ROA/MCA joint usage, including:

• Real Options Analysis?sometimes referred to as "Black-Scholes" analysis, it is valuable for determining pricing structures, or options, for such outcomes
• Monte Carlo Analysis?an increasingly popular tool for determining the likelihood and significance of a complete range of future outcomes
• Checklists, case studies, web site addresses?for further business and negotiation resources

In the no-quarter world of business negotiation, a patient and methodical inquiry into all relevant matters is not practical. At the same time, rapid analysis may not provide the data required to satisfy all parties. What is needed is a model that takes into account the speed and urgency required to effectively prepare for a negotiation while allowing rational and defensible analysis of the numerous real options.

Dealmaking Using Real Options and Monte Carlo Analysis introduces that model. This practical, results-based book unveils a negotiating system that achieves the dual goals of speed and reasonable certainty, and is destined to become the method of choice for reaching outcomes designed to satisfy all parties in the negotiation.