Authors: George B. Hawkins, ASA, CFA and Michael A. Paschall, ASA, CFA, J.D.
Imagine a business where every new assignment is a unique case study in people, management, customers, risks, and rewards. In business valuation, no two companies are alike; nor do numbers and financial statements tell the whole story. Successful business valuators have to be detectives while sifting through the details of a company, and they need a diverse knowledge of finance, economics, law, marketing, and sales to do that. They must also be able to step back and see the big picture from the viewpoint of a buyer. It is this variety, and the intellectual challenges it provides, that makes business valuation both interesting and exciting.
This guide aims to demystify the process by:
Part 1. Getting Started as a Business Valuator
Chapter 1. Training to Be a Business ValuatorChapter 2. Engagement AgreementsChapter 3. Minimizing the Risk of Malpractice LiabilityChapter 4. Marketing Valuation Services
Part 2. Valuing Businesses and Business Interests General Valuation Considerations
Chapter 5. Overview of Valuation and the Different Valuation ApproachesChapter 6. Business Valuation Standards Gathering and Analyzing InformationChapter 7. Preparing to Interview a Company’s ManagementChapter 8. Interviewing a Company’s ManagementChapter 9. Research Materials Needed by Business ValuatorsChapter 10. Computer Software Used by Valuators Income Approach to ValuationChapter 11. Introduction to the Income Valuation Methods (and the Time Value of Money)Chapter 12. Discounted Future Income MethodChapter 13. Capitalization of Income MethodChapter 14. Considerations in Selecting the Appropriate Income MethodChapter 15. Adjusting Income StatementsChapter 16. Valuation ForecastsChapter 17. Discount and Capitalization Rates Market Approach to ValuationChapter 18. Guideline Public Company MethodChapter 19. Guideline Transaction (“Merger and Acquisition”) MethodChapter 19a. Use of Information Subsequent to the Valuation Date Cost Approach to ValuationChapter 20. Cost Valuation Method Discounts, Premiums, and ConclusionsChapter 21. Valuation Discounts and PremiumsChapter 22. Reaching Conclusions about Value Valuation ReportsChapter 23. Preparing a Valuation ReportChapter 24. Sample Valuation Reports
Part 3. Special Types of Valuations
Chapter 25. Medical PracticesChapter 26. Family Limited Partnerships (FLPs)Chapter 27. Employee Stock Ownership Plans (ESOPs)Chapter 28. General Contractors and Specialty Subcontractor IssuesChapter 29. Independent Local Telephone CompaniesChapter 30. Convenience StoresChapter 31. LitigationChapter 32. Jointly-Retained Business ValuationsChapter 33. Information Technology Consulting FirmsChapter 34. Stock OptionsChapter 35. Selling the CompanyChapter 36. Restricted Stock in Public CompaniesChapter 37. Professional Practices—Special TopicsChapter 38. Blockage Discounts for Publicly Traded StockChapter 39. Orthodontic PracticesChapter 40. Distressed DebtChapter 41. Regression Analysis in Valuation EngagementsChapter 42. Automobile DealershipsAppendix A. ArticlesAppendix C. Practice AidsAppendix D. Professional Standards