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With an expected valuation of $75 billion to $100 billion, Facebook will be among the biggest companies to seek the public markets in recent memory.
Consumers with a high expected valuation purchase the product before learning their actual valuation at the offered advance-purchase discount; consumers with a low expected valuation will wait and purchase the good at the regular price only in the event where their realized valuation is high.
Nearly 50 years since its founder put a first edition together from his mother's kitchen table, Time Out has announced it intends to float on the stockmarket with an expected valuation between £185m and £225m.
But given Facebook's expected valuation of at least $75 billion, Mr. Zuckerberg will be far richer on the day of his initial public offering of stock than those tech titans were.
At Kinder Morgan's expected valuation when it begins trading as a public company, Goldman, Carlyle and the other owners will have paper profits of roughly three times their original investments.
Is the Expected Valuation for the Company Realistic?
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In an intertemporal setting in which individual uncertainty is resolved over time, advance-purchase discounts can serve to price discriminate between consumers with different expected valuations for the product.
The low expected valuations for exits in the Korean M&A market also influences the valuations of venture capital rounds.
ING is carving off a non-core business for a relatively good price: Julius Baer is paying about 3% of the division's assets under management including surplus capital, which is in line with expected valuations.
Part of the answer is that many market participants expect valuations of private equity stakes to shrink.
In the United States, venture capital respondents are of split opinion regarding valuations over the next five years with 32percentt expecting increases, 34percentt expecting decreases and 34percentt expecting valuations to hold steady.
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CEO of Professional Science Editing for Scientists @ prosciediting.com