Business Valuation An Integrated Theory

by Mercer, Z. Christopher; Harms, Travis W.

• ISBN13: 9781119583097
• ISBN10: 1119583098
• Edition: 3rd
• Format: Hardcover
• Copyright: 2020-10-20
• Publisher: Wiley

Summary

A guide that demystifies modern valuation theory and shows how to apply fundamental valuation concepts

The revised and updated third edition of Business Valuation: An Integrated Theory explores the core concepts of the integrated theory of business valuation and adapts the theory to reflect how the market for private business actually works.

In this third edition of their book, the authors—two experts on the topic of business valuation—help readers translate valuation theory into everyday valuation practice. This important updated book:

• Includes an extended review of the core concepts of the integrated theory of business valuation and applies the theory on a total capital basis
• Explains “typical” valuation discounts (marketability and minority interest) and premiums (control premiums) in the context of financial theory, institutional reality and the behavior of market participants
• Explores evolving valuation perspectives in the context of the integrated theory
• Written by two experts on valuation theory from Mercer Capital

The third edition of Business Valuation is the only book available regarding an integrated theory of business valuation—offering an essential, unprecedented resource for business professionals.

Author Biography

Z. CHRISTOPHER MERCER, FASA, CFA, ABAR, is the founder and CEO of Mercer Capital. A nationally renowned author, speaker, and business valuator, Mr. Mercer's interests include the valuation of privately held and public companies, as well as litigation engagements in which valuation questions require analysis.

TRAVIS W. HARMS, CFA, CPA/ABV, is the leader of Mercer Capital's Family Business Advisory Services Group. He focuses primarily on providing financial, strategic, and valuation consulting to multi-generational family businesses. Mr. Harms regularly speaks and writes on valuation and related topics for family business owners and their advisors.

Table of Contents

Acknowledgments

Chapter 1 :: The World of Value

Chapter 2 :: The Integrated Theory (Equity Basis)

Chapter 3 :: The Integrated Theory (Enterprise Basis)

Chapter 4 :: Income Approach (Cash Flows)

Chapter 5 :: Income Approach (Discount Rate)

Chapter 6 :: Market Approach (Guideline Public Companies)

Chapter 7 :: Market Approach (Guideline Transactions)

Chapter 8 :: Restricted Stock Discounts and Pre-IPO Studies

Chapter 9 :: Introduction to the QMDM

Chapter 10 :: The QMDM Assumptions in Detail

Chapter 11 :: Applying the QMDM

Chapter 12 :: Applying the Integrated Theory to Tax Pass-Through Entities

About the Authors

Index