... debt, then have the seller reinvest part of the funds in the hopeof obtaining a second gain (this is an LBO,1see Chapter 44 );.have the buyer pay for part of the purchase price in shares, ... resaleprices.For this reason, the sum-of-the-parts method is useful for valuing smallcompanies with no particular strategic value. The sum-of-the-parts method isparticularly applicable for companies, ... of Economic Policy, 8, 45 –57, 1992.On IPO:A. Subrahmanyam, S. Titman, The going public decision and the development of financial markets,Journal of Finance, 54( 3), 1 045 –1082, June 1999.872Valuation...