The authors of Oliver Wyman's Private Equity Practice
(in joined effort with Technical University Berlin)
developed a framework to quantify the value of a
company's managerial flexibility, modeled according to
the "real options" approach. The article is based on a
High-Value Divestment consulting case in the high-tech
industry. It shows that under given circumstances
neglecting such real options will lead to substantial
undervaluation. 2007 pdf
