Tuck School of Business at Dartmouth
Tuck Home Dartmouth Home Contact Us Site Map Search

  Home
About the Center

Research
Overview
Articles
Case Studies
Research Projects
Working Papers
Conference Presentations

Education
News
Events & Outreach
Resources
  Research Projects

JUNE 2007 VALUATION SURVEY RESULTS
In the spring of 2007, the Center launched a survey of venture capital, buyout, and mezzanine fund general partners throughout the US about the adoption and implementation of valuation guidelines and regulations. Survey respondents represented a cross section of investors in terms of fund size, geography, and number of funds under management. The survey results include comparisons of responses to questions asked of GPs in similar valuation surveys in 2003 and 2005.

Valuation Guidelines Survey Results

Related Links

Download the
survey results





PRIVATE EQUITY LEADERSHIP SUMMIT: VALUATION III
On June 20 and 21 of 2007, the Center for Private Equity and Entrepreneurship hosted 54 private equity practitioners and industry experts for a focused discussion on trends and developments in valuation in US and international markets. Attendees offered a wide range of experiences, with representation from general partners (both venture and buyout), limited partners, fund-of-fund managers, accountants, consultants, service providers, academics, and industry associations. Participants discussed openly and anonymously the issues of applying best practices in valuing private companies and the impending requirements of Fair Value regulations.

Valuation Guidelines Survey Results

Related Links

Download the
conference proceedings





VALUATION GUIDELINES SURVEY RESULTS
The Center recently completed a survey of private equity general partners throughout the US regarding the adoption and implementation of valuation guidelines. Respondents to the Tuck survey represented a broad cross section of GPs with diversity in investment style, fund size, and number of funds under management. Of the 102 respondents nearly 70% were VCs and 25% were buyout funds. This survey followed up on a similar survey by the Center in 2003 and showed that, despite consistent industry attitudes over time about support for valuation guidelines (from about 50% of GPs) as well as opposition (from nearly 20% of GPs), the guidelines developed by the Private Equity Industry Guidelines Group are gaining traction.

Valuation Guidelines Survey Results

Related Links

Download the
survey results





EXIT STRATEGIES SURVEY
The Center recently completed an exit strategies survey of over 500 private equity general partners throughout the US. This survey was the second phase of the Entrepreneurial Exit Strategies Program funded by a generous grant from the NASDAQ Educational Foundation. The exit study addresses the decision-making processes and strategies of entrepreneurs and private equity fund managers with successful companies exploring exit opportunities and liquidity events. The survey builds on the results found through a review of academic and business literature as well as interviews with over 20 general partners, management teams, investment bankers, and legal and accounting professionals. 116 private equity funds, from both the venture and buyout perspective, completed the survey (24% response rate).

Exit Strategies Survey

Related Links

Download the
survey results





LIMITED PARTNERSHIP AGREEMENTS CONFERENCE
On July 20 and 21, 2004 the Center for Private Equity and Entrepreneurship hosted an industry conference on LPA terms and conditions in Hanover, New Hampshire. Following the precedent of the conference on private equity valuations, held in the summer of 2003, this conference was a forum to bring together leading private equity experts (including limited partners, general partners, lawyers, academics, industry association representatives, and intermediaries) to discuss terms and conditions and to provide input into the model LPA. Moreover, the conference provided a forum for discussion of the LPA survey conducted by the center (see below) and general trends in LPA terms and conditions.

LPA Conference Proceedings

Related Links

Download the conference proceedings





LIMITED PARTNERSHIP AGREEMENT SURVEY
The Center has conducted a survey of leading general partners and limited partners about the terms and conditions typically included in a limited partnership agreement (LPA).

The survey was conducted in response to discussions within the private equity industry about the value of model language and structure in LPA agreements. The goal of the survey was to understand what the industry considers to be the key issues and clauses of the LPA. One hundred twenty-five GPs and 97 LPs completed the survey which, with over 75 questions, required significant effort on the part of the respondents.

The survey is part of a larger LPA project led by the Center in conjunction with leading private equity practitioners. A working conference was held on July 20 and 21, 2004 for industry leaders to discuss the survey results and model documents. An Agreement Committee has been drafting a guideline LPA. An "open source" model LPA with alternative language, explanatory notes and numerical examples will be posted when available on the Center's website.

Limited Partnership Agreements

Related Links

Download the LPA survey summary

Related Links

Download the
survey results- GPs

Related Links

Download the
survey results- LPs





PRIVATE EQUITY VALUATION AND PERFORMANCE REPORTING CONFERENCE
On June 17 and 18 of 2003, the Center for Private Equity and Entrepreneurship hosted 48 private equity practitioners and recognized industry thought leaders for a conference on trends and developments in valuation and reporting in the industry. Attendees offered a wide range of experiences, with representation from general partners (both venture and buyout), limited partners, fund-of-fund managers, accountants, lawyers, consultants, service providers, and industry organizations.

The purpose of the conference was to bring all of the groups together in one forum to discuss freely and anonymously the increasingly important and visible issue of valuation standards within the private equity industry. Prior to the conference, such a forum for open, face-to-face discussion had not been provided to the various parties. This discussion format was important for the different participants in the industry to achieve a common understanding of valuation issues as a basis for possible industry consensus on valuation guidelines.

Valuation Conference Proceedings

Related Links

Download the conference proceedings

Related Links

Download the exhibits





VALUATION STANDARDS
The Center team conducted a comprehensive survey and analysis of valuation practices in the private equity industry. Currently, valuation practices by private equity general partnerships vary widely. These discrepancies are increasingly problematic given the strained market conditions for private and public equity.

This project entailed reviewing existing guidelines and proposals, conducting an in-depth survey of private equity firms on industry practices, and developing a report on practices and guidelines. The study aimed to produce a catalyst for a consensus or set of useful alternatives rather than a single set of proposed guidelines. The valuation study has three phases: Phase I, the Venture Capital Survey; Phase II, the Buyout Survey; and Phase III, a Manual on Valuation Methodologies. The first phase of the project was completed in fall 2002.

Valuation Survey Results

Related Links

Download the full report (PowerPoint document)





ENTREPRENEURIAL EXIT STRATEGIES PROGRAM
The NASDAQ Stock Market Educational Foundation, Inc., recently awarded the Center for Private Equity and Entrepreneurship $57,500 to fund a study of the decisions and strategies of entrepreneurs and venture capital investors that lead to the successful private sale or IPO of a company. Research will focus on these areas: management practices that lead to the successful exit strategy of a venture-backed company, the decision between selling a startup or conducting an IPO, and the buy/hold/sell decision-making process among investors whose shares become publicly traded.

During this project, the center will conduct a thorough review of relevant academic and business literature; interview venture capitalists, investment bankers, investment managers, and successful entrepreneurs; and perform statistical analyses. By developing educational materials and holding conferences and workshops, the project aims to educate MBA students, executives participating in Tuck's programs, members of the wider Dartmouth community, and other financial market participants.

 

    Copyright 2002 The Trustees of Dartmouth College. All rights reserved.