Income Business Valuation and Private Equity Market in the Czech Republic: Empirical Study

Through a short questionnaire, we conducted a survey whose purpose was to determine the real behavior of investors in private equity markets in the Czech Republic. The behavior of investors, as the direct market participants was examined in terms of the way in which these investors use income business valuation approach. Our particular interest was aimed at income valuation and its role within the process of acquiring a privately held company. Investors as the participants of the market are involved in the process of pricing of companies that are subjects of acquisition, and the way the investors in their practice approach to business valuation and the role of the valuation analysis during the decision-making process is essential for using the income valuation approach for the purposes of quantifying the value of privately held companies. The aim of this paper is to present the results of our survey.