Principles of Private Firm Valuation

ISBN-13: 9780471487210 / Angielski / Twarda / 2005 / 192 str.

Stanley J. Feldman

Opis

A complete explanation of the issues that determine private firm value
Principles of Private Firm Valuation combines recent academic research and practical real-world experience to help readers better understand the multitude of factors that determine private firm value. For the financial professional serving private firms-who are increasingly being called upon to give advice on issues related to firm valuation and deal structure-this comprehensive guide discusses critical topics, including how firms create value and how to measure it, valuing control, determining the size of the marketability discount, creating transparency and the implications for value, the value of tax pass-through entities versus a C corporation, determining transaction value, and the valuation implications of FASB 141 (purchase price accounting) and 142 (goodwill impairment).
Dr. Stanley J. Feldman (Lowell, MA) is Associate Professor of Finance at Bentley College, where he currently teaches courses in corporate finance with a focus on business valuation and business strategy at both the graduate and undergraduate levels. He is a member of the FASB Valuation Resource Group and is Chairman and cofounder of Axiom Valuation Solutions.

Spis treści

Preface.

CHAPTER 1: The Value of Fair Market Value.

CHAPTER 2: Creating and Measuring the Value of Private Firms.

CHAPTER 3: The Restructuring of Frier Manufacturing.

CHAPTER 4: Valuation Models and Metrics: Discounted Free Cash Flow and the Method of Multiples.

CHAPTER 5: Estimating the Cost of Capital.

CHAPTER 6: The Value of Liquidity: Estimating the Size of the Liquidity Discount.

CHAPTER 7: Estimating the Value of Control.

CHAPTER 8: Taxes and Firm Value.

CHAPTER 9: Valuation and Financial Reports: The Case of Measuring Goodwill Impairment.

Notes. Index.

O autorze

DR. STANLEY J. FELDMAN is Associate Professor of Finance at Bentley College, where he currently teaches graduate and undergraduate courses in corporate finance with a focus on business valuation and business strategy. He is a member of the FASB Valuation Resource Group and is Chairman and cofounder of Axiom Valuation Solutions. Dr. Feldman has written extensively on issues related to business valuation and small business financing for the Boston Herald and the Boston Business Journal, and lectures at both academic and professional conferences. He received his PhD from New York University.

Blurb

Principles of Private Firm Valuation

The entrepreneurial explosion in the United States over the last thirty years has resulted in a record number of established private businesses. If you′re a financial professional serving these private firms as a CPA, valuation analyst, or even CFO you′ve probably been called upon to give advice on issues such as firm valuation, deal structure, and related business transition planning. Whether you′re looking to use valuation in preparation for a private firm transaction or strictly for tax–related reasons, you need a solid understanding of how private firm valuation works.

Written by valuation expert Stanley Feldman, Principles of Private Firm Valuation integrates academic research results with on–the–ground experience, in order to provide more disciplined guidance on how you should address several of the most important and largely unresolved issues in the arena of private firm valuation. Filled with in–depth insights and practical advice, this comprehensive resource offers an executive education on important valuation issues, including:

• Assessing which valuation method is most accurate discounted free cash flow or the method of multiples
• Estimating the size of the marketability discount
• Estimating the value of control and its implication for valuing minority interests in a private firm
• The influence of taxes on firm value, specifically whether S corporations are worth more than equivalent C corporations
• How best to estimate a private firm′s cost of capital with a focus on the adjusted version of the CAPM, known as the build–up method

From introducing a framework designed to measure the value benefits of various strategic initiatives to outlining the valuation implications of FAS 141 (Accounting for Business Combinations) and FAS 142 (Accounting for Goodwill and Other Intangible Assets), Principles of Private Firm Valuation covers some of today′s most important valuation issues.

Weaving recent academic research with real–world case studies, this unique guide offers the most up–to–date tools and techniques needed to properly perform private firm valuation.