Tutorial: Financial Valuation of Information Technology in a Distressed Economy (Half-day tutorial)
Leader: Elliot Fishman

This tutorial will cover methods and techniques to value information technology in a distressed economy. Valuation of information technology is important because investment resources are especially limited in a recession. In commercial settings, research and development expenditures need to be allocated in a manner to maximize investor returns. By connecting the underlying economic value of technology with its likely impact on the balance sheet, managers and technologists will be better able to select and fund financially worthwhile projects.

We will review problems and methods of technology valuation, including the earnings method, comparables method, and asset-based approaches. Topics covered include valuation of intangible assets, scarcity pricing, premiums for control, and first mover advantage. We will discuss notion of fair value and assigning hypothetical prices in absence of a trade. Other topics that will be addressed include pricing in venture capital markets, diversification for portfolio management, and auction pricing in M&A.

Elliot Fishman (efishman@stevens.edu) is Associate Professor at the Howe School of Technology Management of Stevens Institute of Technology where he teaches courses on Corporate Finance and Technology Management. He is founder and president of Astrina Capital LLC, a financial advisory firm that counts major law firms and high net worth individuals among its clients. Formerly, he managed the New York office of Advantage Capital Partners, a venture capital firm with $440 million under management. He holds a PhD from the University of Pennsylvania; an MBA from the Wharton School; and a BSE in Electrical Engineering from Duke University.