European Technology Market Screening

Abstract

So far we have developed an LBO model that can be applied in a standard form to any company and which requires only a few inputs that are easily obtained. Moreover, we have optimized the model for the valuation of technology buyouts to the extent possible and have highlighted key issues that could not be incorporated but should be taken into account by the investor when the model’s output, the IRR, is compared. In the following sections, we apply the model to selected European Technology Markets. The aim is to (a) validate the model’s application, and (b) identify companies that could be regarded as buyout opportunities. Finally, we will arrive at a short list of companies deemed good prospects by this model, which might provide further evidence about the degree of opportunity for buyouts in the European technology sector.