The Small Business Valuation Book: Easy-to-use Techniques That Will Help You. Determine a Fair Price, Negotiate Terms, Minimize Taxes

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  • Edition: 2nd
  • Format: Paperback
  • Copyright: 2008-09-17
  • Publisher: Adams Media Corp
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It's a tough question that you've undoubtedly faced as a potential buyer or seller of a small business. However, it doesn't have to be. This book takes the mystery out of small business valuation so you know how much the company really costs and can make the deal that's best for you.

Author Biography

Lawrence W. Tuller is a graduate of Harvard University and the Wharton School and holds a CPA certificate

Table of Contents

Business Valuation Principlesp. 1
Exposing the Eight Myths of Business Valuationsp. 3
When Selling a Business or Applying for a Loanp. 4
Basing Value on Earningsp. 5
When Compared to Another Companyp. 6
Five Times Earningsp. 6
Loss Businesses are Worthlessp. 7
Business Owners Know Bestp. 8
Two Times Revenuep. 9
In the Eye of the Beholderp. 9
Lack of Business Appraisal Standardsp. 10
The Basicsp. 13
Terminologyp. 15
Cash Is Kingp. 21
The Business Valuation Processp. 24
Discounting Future Returns and Other Theoretical Methodsp. 31
The Capital Market Theoryp. 32
Discounted Cash Flowp. 34
Continuing Valuep. 46
The Excess Earnings Methodp. 48
The Asset Value Methodp. 51
Gathering Datap. 53
Initial Due Diligencep. 54
Accumulating and Assimilating Datap. 57
Interviewing Management Personnelp. 59
Internal Reportsp. 64
Contracts, Leases, Appraisals, Claimsp. 65
Economic and Industry Datap. 67
Restructuring Financial Statementsp. 71
Receivables and Revenue Recognitionp. 72
LIFO Versus FIFO Inventory Valuationp. 74
Leasesp. 75
Intangiblesp. 77
Pension Liabilityp. 78
Purchase Accounting Adjustmentsp. 79
Intercompany Pricing and Investmentp. 80
Nonrecurring Eventsp. 81
Owner/Manager's Compensation and Expensesp. 82
Impact of Inflationp. 84
Ratio and Risk Analysesp. 85
Debt Utilization Ratiosp. 89
Liquidity Ratiosp. 90
Profitability Ratiosp. 91
Asset Utilization Ratiosp. 93
Risk Analysisp. 96
Qualitative Valuation Measuresp. 101
A Cash Flow Forecasting Modelp. 105
Economic and Business Assumptionsp. 106
Sales Forecastp. 107
Purchased Materials Forecastp. 109
Direct Labor Forecastp. 110
Cost/Sales/Asset Functional Relationshipsp. 111
Inventory Forecastp. 113
Operating Expenses Forecastp. 114
Statement of Income Forecastp. 118
Balance Sheet Forecastp. 120
Cash Flow Forecastp. 123
Putting It All Togetherp. 127
Ratio and Risk Analysisp. 133
Evaluation of Qualitative Factorsp. 138
Choosing a Capitalization Ratep. 139
Discounting Cash Flow to Debtholdersp. 142
Calculation of Continuing Valuep. 143
The Final Calculationp. 144
Conducting Research on the Internetp. 147
Using the Internet for Comparative Analysisp. 147
North American Industry Classification Systemp. 149
Sources of Government Datap. 150
Sources of Publicly Traded Company Datap. 151
Sources of Data for Privately Held Companiesp. 153
Buy/Sell Datap. 155
Internet Addressesp. 157
Valuations for Special Situationsp. 159
Minority Interestsp. 161
Pro Rata Share of Total Business Valuep. 163
Minority Interest Discountp. 164
Separate Calculation for the Present Value of Minority Benefitsp. 166
Minority Interests in Micro Businessesp. 169
Debt Securitiesp. 171
Reasons for Valuing Debt Securitiesp. 172
Fundamentals of Debt Valuationp. 174
Defaulted Debt Obligationsp. 183
Sale/Leaseback of Hard Assetsp. 186
Securitizationp. 188
Buyout Agreementsp. 191
Valuation Theoryp. 193
Independent Appraisalsp. 196
Negotiating a Valuep. 197
Repurchase Agreement Funding and Termsp. 198
Cross-Purchase Agreementsp. 203
Multibusinessesp. 209
Defining and Collecting Data by Business Segmentp. 210
Business Segment Pro Forma Forecastsp. 212
Corporate Office Cost Centerp. 216
Present Value Comparisons by Business Segmentp. 220
Consolidated Valuationp. 227
Valuations for Special Types of Companiesp. 231
Micro Businessesp. 233
Valuation Alternativesp. 234
Reconstructing Cash Flows and Asset Valuesp. 244
Valuation Effects of Stock or Asset Salep. 246
Valuing Deferred Paymentsp. 247
Professional Practices and Personal Service Companiesp. 251
The Uniqueness of Professional Practices and Personal Service Companiesp. 252
Goodwillp. 254
Measuring Goodwillp. 256
Financial Analysisp. 257
Valuation Calculationsp. 262
Real Estate-Based Businessesp. 267
Market and Competitive Factorsp. 268
Competitive Analysisp. 272
Forecasting Market Share and Occupancyp. 275
Forecasting Average Room Rate per Occupied Roomp. 279
Forecasting Expensesp. 280
Income Capitalization Valuationp. 282
Internal Rate of Return Methodp. 284
Start-Up Businessesp. 289
Valuing Ideasp. 290
Three Value-Building Criteriap. 291
Building a Customer Basep. 293
Trade Showsp. 294
Publicityp. 295
Advertisingp. 296
Calculating Business Valuep. 297
Conclusionp. 299
Indexp. 301
Table of Contents provided by Ingram. All Rights Reserved.

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