The Market Approach to Valuing Businesses Second Edition Set

by Pratt, Shannon P.

• ISBN13: 9780471783879
• ISBN10: 0471783870
• Edition: 2nd
• Format: Hardcover
• Copyright: 2006-01-06
• Publisher: Wiley

Summary

While the number of companies has declined, the quantity and quality of detailed information available for the transaction method has increased dramatically. This book offers comprehensive direction on the powerful method within the market approach. It includes updated and new data sources. In the new edition, court cases regarding the market approach are presented and analyzed.The workbook to accompany The Market Approach to Valuing Businesses, Second Edition consists of questions and exercises, presented in the same order as the chapters in the book

Author Biography

Shannon P. Pratt, CFA, FASA, MCBA, CM&AA, is the Chairman and CEO of Shannon Pratt Valuations, Inc. a premier business valuation firm located in Portland Oregon, and is the founder and Editor Emeritus of Business Valuation Resources, LLC. Over a distinguished career of close to four decades, he has performed valuation engagements for M&A, ESOPs, gift and estate taxation, marital dissolution, shareholder oppression and dissent, and numerous other purposes. He has conducted numerous fairness and solvency opinions, has testified in a wide variety of federal and state courts across the country, and frequently participates in arbitration and mediation proceedings. Dr. Pratt is one of the most successful and respected authors in his field. He is the author or coauthor of several industry standards, including Valuing a Business: The Analysis and Appraisal of Closely Held Companies, Valuing Small Businesses and Professional Practices, The Market Approach to Valuing Businesses, Standards of Value, Business Valuation and Taxes, The Lawyer's Business Valuation Handbook, and Cost of Capital.

Table of Contents

List of Exhibits

Foreword

Preface

Acknowledgments

Notation System Used in This Book

Introduction

Defining Market Multiples and Market Approach Methods

Defining Market Value Multiples

The Guideline Public Company Method

The Guideline Transaction (Merged and Acquired Company) Method

Other Market Methods

Finding and Analyzing Comparative Market Transaction Data

Finding Public Company Market Transaction Data

Finding Merger amd Acquisition Market Data

Adjusting Financial Statements

Comparative Financial Analysis

Compliling Market Value Tables and Reaching A Value Conclusion

Compiling Useful Market Value Tables

Selecting, Weighting, and Adjusting Market Value Multiples

Control Premiums and Minority Discounts

Discounts for Lack of Marketability

Sample Market Approach Cases

Small-Size Service Company Sample Case-Sub Shop

Medium-Size Service Company Sample Case-Software Developer

Important Aspects of using The Market Approach

Reconciling Market Approach Values with Income and Asset Approach Values

Does Size Matter? Evidence from Empirical Data

Common Errors in Implementing the Market Approach

The Dismal Track Record of U.S. Market Acquisitions

The Market Approach in the Courts

Bibliography

Data Resources

International Glossary of Business Valuation Terms

The Quantitative Marketability Discount Model

Pratt's Stats TM

Data Contributors

Index

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