As valuation uncertainty increases, the need to value optionality increases. But what are valuable options, and what are not? All options are opportunities, but not all opportunities are options. This session aims to better enable you to distinguish between valuable options and opportunities, and to provide a framework for valuing them. The panelists measure its success by the number of attendees who are able to draw option-payoff diagrams on cocktail napkins at a happy hour.
Learning Objectives:
- Attendees will analyze the concept of real options and distinguish between general business opportunities and option-like strategic rights with measurable value.
- Attendees will evaluate frameworks for identifying, structuring, and valuing managerial flexibility under conditions of uncertainty.
- Attendees will apply real option valuation concepts, including payoff structures and decision trees, to practical restructuring and investment scenarios.