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9780768682274

Valuation (paperback)

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  • ISBN13:

    9780768682274

  • ISBN10:

    0768682274

  • Edition: 1st
  • Format: Paperback
  • Copyright: 2002-01-14
  • Publisher: Ft Pr
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Summary

InValuation: Avoiding the Winner's Curse, authors Kenneth R. Ferris and Barbara S. Pecherot Petitt will help you master both the science and the art of M&A valuation. Concise, realistic, and easy to use, it brings together the field's best "rules of thumb," compares every leading traditional and alternative approach, presents examples and case studies from many industries, and offers practical solutions for today's key accounting, reporting, and tax-related challenges.

Author Biography

KENNETH R. FERRIS is Distinguished Professor of World Business at Thunderbird, The American Graduate School of International Management. The author/co-author of ten books, he has served on the faculties of Ohio State University, Northwestern, SMU, and numerous institutions of higher learning throughout the Asia-Pacific region. He has served as director of five corporations, including three listed on the New York Stock Exchange. He currently serves as mergers and acquisitions consultant to small businesses in the southwest US.

BARBARA S. PÉCHEROT PETITT is Assistant Professor of Finance at Thunderbird, The American Graduate School of International Management. She specializes in corporate finance, valuation, mergers, and acquisitions. Prior to joining Thunderbird, she spent two years with Financial Services Management Development Limited as a consultant, and worked for several banks and companies in London and abroad. She holds a Ph.D. in Finance from the University of Grenoble, France.

Table of Contents

Preface
Valuation: An Overview
Why Firms Merge or Acquire: A Historical Perspective
Merger and Acquisition Premiums
The Process of Valuation
Alternative Valuation Frameworks
Summary
Notes
Financial Review and Pro Forma Analysis
Financial Review
Pro Forma Analysis
Sensitivity Analysis: Alternative Scenarios
Summary
Notes
Nokia Corporation Financial Data
Preparation of Statement of Cash Flows
Displayed Formulas for EXCELordf; Spreadsheet
Account Forecasting Alternatives
Traditional Valuation Models
Earnings Multiples Analysis
Discounted Cash Flow Analysis
Summary
Notes
Calculating the WACC for a Complex Capital Structure
Some Frequently Asked Questions and Answers About DCFA and Earnings Multiples Valuation
Alternative Valuation Models
Valuation in the Absence of Earnings or Cash Flow
Valuation When Capital Structure Changes
Economic Value Analysis
Real Options Analysis
Summary
Notes
Discounted Cash Flow Analysis: GoAmerica, Inc
Capital Cash Flow Analysis
DCFA When a Firm's Capital Structure Changes
The Black-Scholes Model
Accounting Dilemmas in Valuation Analysis
Assessing Economic Reality
Income Statement Transformations: Forecasting Permanent Earnings and Free Cash Flows
Balance Sheet Transformations: Forecasting the Equity Value of a Company
Cash Flow Statement Transformations: Forecasting CFFO and Free Cash Flow
Summary
Notes
Financial Reporting and Tax Considerations in Mergers and Acquisitions
Financial Reporting: To Combine, or Not to Combine
Consolidated Reporting: Pooling versus Purchase Accounting
Pooling versus Purchase Accounting: The Effect on Firm Valuation
Tax Considerations of Mergers and Acquisitions
Minority Interest
Accounting for Goodwill
Summary
Notes
Negative Goodwill
Some Final Thoughts
Valuation: A DebrieTHORN;ng
Some Caveats to Consider
Closure
Bibliography
Index
Table of Contents provided by Publisher. All Rights Reserved.

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