Business Valuation For Dummies

ISBN-13: 9780470344019 / Angielski / Miękka / 2009 / 368 str.

Lisa Holton

Opis

Business Valuation For Dummies is filled with expert guidance that business owners, managers at all levels, investors, and students can use when determining the value of a business. It contains a solid framework for valuation, including advice on analyzing historical performance, evaluating assets and income value, understanding a company′s financial statements, estimating the cost of capital, business valuation models, and how to apply those models to different types of businesses.

Spis treści

Introduction 1

Part I: What Business Valuation Means 7

Chapter 1: The Value of Understanding Business Valuation 9

Chapter 2: What Triggers a Business Valuation? 19

Chapter 3: Understanding the Tangibles and Intangibles of Business Valuation 35

Chapter 4: Approaches and Methods — Basic Theories of the Valuation Process 45

Chapter 5: The Challenge of Valuation in a Knowledge Economy 61

Part II: Getting Familiar with Valuation Tools, Principles, and Resources 73

Chapter 6: Getting Familiar with a Typical Valuation Report 75

Chapter 7: Meeting the Supporting Players in the Valuation Process 87

Chapter 8: Understanding Financial Statements 111

Chapter 9: Using Rule–of–Thumb Valuations for Mom–and–Pop Businesses 131

Part III: If You′re Selling a Business . . . 153

Chapter 10: Making Sure You′re Ready to Sell 155

Chapter 11: Deciding What to Do about the Family Company 167

Chapter 12: Due Diligence on the Sell Side 181

Chapter 13: Case Study: Valuation on the Sell Side 189

Part IV: If You′re Buying a Business . . . 203

Chapter 14: How Do You Know Whether You′re Ready to Buy? 205

Chapter 15: Moving from Valuation to Negotiation 215

Chapter 16: Due Diligence on the Buy Side 225

Chapter 17: Forensic Accounting and the Due Diligence Process 239

Chapter 18: Case Study: Valuation on the Buy Side 251

Part V: Don′t Try This at Home! Turning Things Over to the Valuation Experts 261

Chapter 19: Divorce 263

Chapter 20: Estate Planning and Gifting 275

Chapter 21: Attracting Outside Investors to Your Startup 287

Part VI: The Part of Tens 297

Chapter 22: Ten Reasons to Consider a Prenup 299

Chapter 23: Ten Questions to Answer Before Considering a Partnership Agreement 307

Chapter 24: Ten Things to Consider Before Transforming Your Company Into an ESOP 313

Glossary 319

Index 327

O autorze

Lisa Holton is a former business editor and reporter for the Chicago Sun–Times. Today, she heads The Lisa Company, a writing, editing, and research firm. She′s a writer for corporations, colleges, and nonprofits nationwide, and has written more than 13 books.

Jim Bates is Vice President, Transaction Support, for the Christman Group, a middle–market investment banking firm based in Palatine, IL.

Blurb

Your hands–on guide to calculating — and understanding — business value

Want to determine the value of a business, but not sure where to start? This plain–English guide gives you step–by–step directions for the major valuation methods, supporting them with real–world examples. You′ll work with easy–to–understand valuation models and apply them to different types of businesses to achieve the fairest, most affordable valuation solution.

• Business valuation 101 — learn what it is, why it′s a challenge, and the approaches that experts take to uncover value (or the lack of it)

• Grasp key valuation tools — understand valuation reports, financial statements, and "rule of thumb" guidelines for specific businesses

• Get to the heart of it — analyze historical performance, evaluate assets and income value, and estimate cost of capital

• If you′re selling a business — see how to conduct due diligence and increase your company′s value

• If you′re buying a business — incorporate valuation into the necessary prep before negotiation

• Seek help from the experts — from divorce to estate planning to attracting outside investors, know when and why you should get outside valuation help

Open the book and find:

• Real–world advice on planning and executing valuation

• The role of the supporting players in the valuation process

• Detailed case studies on buying and selling businesses

• How forensic accounting fits into valuation

• The soft and hard skills needed for successful valuation

• What to build into a partnership agreement

• Why you should pause before transforming your company into an ESOP