FUNDAMENTALS & MODELS OF COMPENSATION VALUATION BASED ON MARKET APPROACH AND ITS IMPLEMENTATION IN OIL INDUSTRY ARBITRATION | ||
| مطالعات حقوق انرژی | ||
| Article 11, Volume 6, Issue 2, October 2020, Pages 399-415 PDF (622.23 K) | ||
| Document Type: ISI | ||
| DOI: 10.22059/jrels.2021.293760.329 | ||
| Authors | ||
| Hamid Reza Oloumi Yazdi* 1; Ali Moghaddam Abrishami2; Mahdi Rashno3 | ||
| 1Associate Professor of Private Law group, Faculty of law and political sciences of Allameh Tabataba`i University | ||
| 2Assistant Professor of Private Law group, Faculty of law and political sciences of Allameh Tabataba`i University | ||
| 3PHD Student of Internationl Oil& Gas contracts Managment of Allameh Tabataba`i University | ||
| Abstract | ||
| Volatility in Oil industry leads to disputes in investment agreements. Compensation valuation is the most critical factor in resolving disputes. One of the famous compensation valuation is market approach which has pros and cons. Price volatility in share markets, non-comparability of previous transactions and unfair prices are obstacles of resorting to this approach for use in arbitration valuation. Calculating average of prices, ratio normalization and considering differences of companies, are solutions for using this approach which are described in this survey. Normally, market approach price is more than asset-based approach and less than income-based approach. In the Iran oil industry, we can only use ratios and for implementing this method, lots of modifications are required and this makes it difficult to have agreement by tribunal of arbitration for the application of this method. | ||
| Keywords | ||
| Market-Based approach; comparable valuation; multiple valuation; compensation calculation; arbitration in oil industry | ||
| References | ||
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