Handbook of Business Valuation

by West, Thomas L.; Jones, Jeffrey D.

• ISBN13: 9780471297871
• ISBN10: 0471297879
• Edition: 2nd
• Format: Hardcover
• Copyright: 1999-08-16
• Publisher: Wiley

Summary

* Important sections on family limited partnerships, intellectual property issues, minority interests, and much more

Author Biography

THOMAS L. WEST is the publisher of the Business Broker and M&A Today, leading industry newsletters, and the author of numerous books. He is also the founder of United Business Investments, and co-founder and past president of VR Business Brokers and the International Business Brokers Association. JEFFREY D. JONES is founder and Chairman of Certified Business Brokers, founder and President of Certified Appraisers, and a designated senior member of the American Society of Appraisers (ASA) and the Institute of Business Appraisers (CBA). He currently serves as Editor of the IBBA Journal and as Chairman of the IBBA’s Standards Committee.

Table of Contents

Introduction	xxxi
PART ONE: The Purpose, Market, and Resources for Valuing Businesses	1	(92)
Reasons to Value a Business and Who Should Do It	3	(6)
Valuation Issues from a Seller's Perspective	9	(8)
Valuation Issues from a Buyer's Perspective	17	(12)
Valuation Issues from an Intermediary's Perspective	29	(12)
The Investment Banker's Perspective on Due Diligence for Mergers, Acquisitions, and Securities Offerings	41	(12)
Valuation Issues from the Legal Perspective	53	(6)
Valuation from the Lender's Perspective	59	(12)
Notable Differences between Middle Market and Small Businesses	71	(10)
Where to Find Industry Information and Guideline Market Data	81	(12)
PART TWO: Valuation Approaches and Methods	93	(192)
Recasting Financial Statements	95	(23)
To Infinity and Beyond: Statistical Techniques Appraising the Closely Held Business	118	(25)
Machinery and Equipment Valuation Approaches and Methods Used in Conjunction with a Going Concern Business	143	(7)
Rules of Thumb: What They Are and How to Use Them	150	(13)
The Direct Market Data Method of Valuing Midsize and Smaller Closely Held Businesses	163	(34)
The Market Approach Using Public Company Data	197	(25)
The Excess Earnings Method	222	(10)
Multiple of Discretionary Earnings Method	232	(32)
Capitalization of Earnings: An Income Approach	264	(9)
Discounted Future Benefits Method: An Income Approach	273	(12)
PART THREE: Valuation Issues by Industry	285	(192)
Valuing Retail Businesses	287	(7)
Valuing Manufacturing Business	294	(14)
Valuing Automobile Dealerships	308	(13)
Valuing Restaurants	321	(21)
Valuing Medical Practices	342	(19)
Valuing Accounting Firms	361	(9)
Valuing Radio and Cable TV Businesses	370	(13)
Valuation of Hotels and Motels	383	(8)
Valuing a Software Company	391	(20)
Valuing Publishing Companies	411	(4)
Valuing Home Healthcare Businesses	415	(14)
Valuing Lumberyards and Home Centers	429	(21)
Valuing Printing Businesses	450	(8)
Valuing Home-Based Businesses	458	(11)
Valuing Country Businesses	469	(8)
PART FOUR: Special Issues	477	(94)
Perspectives on Valuing a Minority Interest in a Private Company	479	(9)
Valuation for ESOP Purposes	488	(14)
Valuing Family Limited Partnerships and Limited Liability Company Interests for Estate Planning Purposes	502	(23)
Valuing Intellectual Property	525	(6)
Corporate Taxes and Valuation	531	(24)
The Use and Abuse of Experts	555	(16)
Index	571