Real Options in Practice
Explores real option theory applied in practice
Real options are quickly becoming the valuation and decision-making method of choice for many companies, including oil and gas companies, utilities and natural resource companies, pharmaceutical and biotech companies, Internet companies, and many others.
Real Options in Practice allows readers to view the world of real options from the vantage point of a corporate practitioner applying real option valuation techniques on a regular basis. Expert Marion Brach describes the challenges of implementing a real option framework in practice within a corporate setting. Touching on the real options most firms care about, Real Options in Practice identifies the classic types of real options-deferral, abandonment, switching, expansion, and compound-and explores the main concepts critical to understanding real option theory. Through Brach's own three-step real option valuation method readers will learn how the theory of real options is now being applied to drive better, more profitable corporate decision-making.
Marion A. Brach, MD, MBA (Hagen, Germany), has undertaken financial valuation of business opportunities and acquisitions using scenario and real option valuation in the biotech industry. A recognized expert on real option theory and practice, Brach received her MBA from the Manchester Business School and frequently speaks at real option seminars.
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CHAPTER 2 Taking an Idea into Practice
CHAPTER 3 The Six Basic Managerial Options
CHAPTER 4 The Value of Uncertainty
CHAPTER 5 A Strategic Framework for Competitive Scenarios
CHAPTER 6 Adding Option Value by Intervention
CHAPTER 7 Real Option AnalysisA Support Framework for Corporate Strategy