Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
10Activity
0 of .
Results for:
No results containing your search query
P. 1
Does data have a price, finally?

Does data have a price, finally?

Ratings: (0)|Views: 253|Likes:
Published by Denis Doeland
Much has been written about the currently fashionable term ‘Big Data’ . The value of data is also frequently ‘discussed’ online. But what is a reasonable value? Has data recently been given an actual price? The acquisition by American SFX Entertainment of the Dutch company ID&T, in their own words the organiser of events and festivals within the ‘Electronic Music Culture’ i.e. Dance events and festivals, appears to give an insight into the actual value of data.
Much has been written about the currently fashionable term ‘Big Data’ . The value of data is also frequently ‘discussed’ online. But what is a reasonable value? Has data recently been given an actual price? The acquisition by American SFX Entertainment of the Dutch company ID&T, in their own words the organiser of events and festivals within the ‘Electronic Music Culture’ i.e. Dance events and festivals, appears to give an insight into the actual value of data.

More info:

Categories:Types, Business/Law
Published by: Denis Doeland on Jul 12, 2013
Copyright:Traditional Copyright: All rights reserved

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

12/09/2013

pdf

text

original

 
!
Does data have a price, finally?
By Denis Doeland and Pim van Berkel
Much has been written about the currently fashionable term
‘Big Data’
.The value of data is also frequently
‘discussed’
online. But what is a reasonable value?Has data recently been given an actual price with the acquisition of ID&T by SFX?
 
 
Doesdatahaveaprice,finally?
Muchhasbeenwrittenaboutthecurrentlyfashionableterm
‘Big Data’
.Thevalueof 
 dataisalsofrequently
‘discussed’
online.Butwhatisareasonablevalue?Hasdata 
 recentlybeengivenanactualprice?TheacquisitionbyAmericanSFX EntertainmentoftheDutchcompanyID&T,intheirownwordstheorganiserof eventsandfestivalswithinthe
‘Electronic Music Culture’
i.e.Danceeventsand 
 festivals, appears to give an insight into the actual value of data.ID&TisprimarilyrecognizedforeventssuchasSensation,Mysterylandand Tomorrowland.Thecompanywasfoundedin1992andiscurrentlyactiveinmore than22countriesinEurope,Asia,Australia,SouthAmericaandNorthAmerica.ID&T isdedicatedtoachievingaleadingroleinNorthAmerica,wheredancecultureis growingatanexplosiverate.Buttheirambitionsarethesameforthewholeworld. ThepressreleasepublishedonPerssupport.nlon21March2013statedthatSFX Entertainmentpurchasedthree-quartersofthesharesinID&Tforanamountof approximately100milliondollars.ForthistransactionID&Twasvaluedatover130 million dollars, roughly 100 million euros.
 Paper:‘Doesdatahaveaprice,finally?’ 
1
 
Whatarethestandardmethodsofvaluation?
Thecurrentandoriginallyappliedmethodsofvaluationforcompaniesessentially give the following results:1.Intrinsic value:Briefexplanation:Valuationbasedonthevisibleequityvalueofacompany, possibly adjusted with hidden reserves, if any.In2011,ID&Trevealedanequityvalueof6.4millioneuro
1
.Whenusingthis methodofvaluation,SFXEntertainmentmakesa
'goodwill'
paymentof93.6 
 million euros. (100 million -/- 6.4 million).2.Market multiples and comparables:Briefexplanation:Whenusingmarketmultiplesthevalueofthecompanyis basedontheindicationthestockmarketiswillingtopayforcomparable companies
2
.OftentheEarningsBeforeInterest,Tax,Depreciationsand  Amortization
(EBITDA)
ismultipliedbyanindustryormarketstandard.Strictly
 speakingthisEBITDAnumbershouldbereducedwiththeavailablenetdebt withintheorganisation.Butforconveniencesakewewillleavethisoutofour hypothesis.
The EBITDA of ID&T was 2.2 million, 4.2 million and 2.1 million for the years 2009, 2010 and 2011 respectively. Meaning an average EBITDA of 2.8 millioneurooverthreeyears.With the assumption comparable companies are sold for 7 times this annual  profit, the valuation of ID&T would be 19.6 million euro (7 * 2.8 million). Anovervalueor'goodwill'of80.4million.
3.Discounted Cash Flow (DCF method):Briefexplanation:Thisisavaluation,wherebythefuturecashflowsare turnedintocashagainsttheso-called
‘weighted average costs of capital’
, 
abbreviated WACC.
 Paper:‘Doesdatahaveaprice,finally?’ 
2

Activity (10)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this
Denis Doeland liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->