Your Best Approach to Determining Value If you're buying, selling, or valuing a business, how can you determine its true value? By basing it on present market conditions and sales of similar businesses. The market approach is the premier way to determine the value of a business or partnership. With convincing evidence of value for both buyers and sellers, it can end stalemates and get deals closed. Acclaimed for its empirical basis and objectivity, this approach is the model most favored by the IRS and the United States Tax Court-as long as it's properly implemented. Shannon Pratt's The Market Approach to Valuing Businesses, Second Edition provides a wealth of proven guidelines and resources for effective market approach implementation. You'll find information on valuing and its applications, case studies on small and midsize businesses, and a detailed analysis of the latest market approach developments, as well as: * A critique of US acquisitions over the last twenty-five years * An analysis of the effect of size on value * Common errors in applying the market approach * Court reactions to the market approach and information to help you avoid being blindsided by a litigation opponent Must reading for anyone who owns or holds a partial interest in a small or large business or a professional practice, as well as for CPAs consulting on valuations, appraisers, corporate development officers, intermediaries, and venture capitalists, The Market Approach to Valuing Businesses will show you how to successfully reach a fair agreement-one that will satisfy both buyers and sellers and stand up to scrutiny by courts and the IRS.
1 Defining market value multiples 3
2 The guideline public company method 25
3 The guideline transaction (merged and acquired company) method 35
4 Other market methods 44
5 Finding public company market transaction data 53
6 Finding merger and acquisition market data 57
7 Adjusting financial statements 76
8 Comparative financial analysis 87
9 Compiling useful market value tables 123
10 Selecting, weighting, and adjusting market value multiples 137
11 Control premiums and minority discounts 143
12 Discounts for lack of marketability 153
13 Small-size service company sample case : sub shop 169
14 Medium-size service company sample case - software developer 195
15 Reconciling market approach values with income and asset approach values 241
16 Does size matter? : evidence from empirical data 252
17 Common errors in implementing the market approach 263
18 The dismal track record of U.S. market acquisitions 274
19 The market approach in the courts 280
App International glossary of business valuation terms
App The quantitative marketability discount model 339
App Pratt's stats data contributors 351
(0 Comentarios)
