Techniques and adjustments in valuing privately-held enterprises in Thailand

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Kanitsorn Terdpaopong ORCID logo, Robert C. Rickards ORCID logo, Mariya Yesseleva-Pionka ORCID logo


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This article investigates the tools appraisal firms use to value privately-held businesses in Thailand. It also tests for covariation between selected descriptive variables and the techniques valuers employ to assist owners in deciding on their companies’ worth. A review of literature relating both to valuation and to strategic planning served as the basis for hypothesis development and questionnaire construction. All 81 approved Thai appraisal firms received the questionnaire. The main findings are that the number and kind of tools Thai appraisal firms employ vary widely. Furthermore, manager and practitioner characteristics such as education, professional association membership, years of work experience, and cases previously handled as well as an appraisal firm’s age and size sometimes are associated with the valuation techniques applied, account adjustments made, and interest rate alternatives chosen. The study furthermore suggests that reporting justifications for the specific valuation techniques employed and the weights assigned their results would increase transparency, afford clients additional useful information, and provide linkage between theory and actual practice. Reliance on senior practitioners and top managers as questionnaire respondents raises the possibility of key informant bias. Future research might examine the extent to which appraised values resulting from application of the tools respondents say they use to agree with prices subsequently paid in arm’s length, market transactions.

Keywords: Valuation, Privately-Held Enterprises, Small Businesses, Discounted Cash Flow, Market Approach, Income Approach, Asset Approach

Authors’ individual contribution: Conceptualization – K.T.; Methodology – K.T.; Validation – K.T.; Formal Analysis – K.T.; Writing – Original Draft – K.T. and M.Y.-P.; Writing – Review & Editing – K.T., R.C.R., and M.Y.; Visualization – K.T., R.C.R., and M.Y.; Project Administration – K.T.; Funding Acquisition – K.T. and M.Y.-P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: Professor Brian Gibson initiated this research project on ‘Business Valuation.’ He passed away just as the fieldwork neared completion. Professor Gibson was the inaugural Senior Director of Research and Curriculum Development at the Australian National Institute of Management and Commerce and a conjoint professor at the University of Newcastle Business School as well as a former President of SEAANZ (Small Enterprise Association of Australia and New Zealand). We dedicate this article to his memory.

JEL Classification: G17, G32, C53, L32, H43

Received: 29.04.2020
Accepted: 23.07.2020
Published online: 27.07.2020

How to cite this paper: Terdpaopong, K., Rickards, R. C., & Yesseleva-Pionka, M. (2020). Techniques and adjustments in valuing privately-held enterprises in Thailand [Special issue]. Corporate Ownership & Control, 17(4), 268-278.