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.
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:
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
Jim Bates is Vice President, Transaction Support, for the Christman Group, a middle-market investment banking firm based in Palatine, IL.
Part I: What Business Valuation Means.
Chapter 1: The Value of Understanding Business Valuation.
Chapter 2: What Triggers a Business Valuation?
Chapter 3: Understanding the Tangibles and Intangibles of Business Valuation.
Chapter 4: Approaches and Methods — Basic Theories of the Valuation Process.
Chapter 5: The Challenge of Valuation in a Knowledge Economy.
Part II: Getting Familiar with Valuation Tools, Principles, and Resources.
Chapter 6: Getting Familiar with a Typical Valuation Report.
Chapter 7: Meeting the Supporting Players in the Valuation Process.
Chapter 8: Understanding Financial Statements.
Chapter 9: Using Rule-of-Thumb Valuations for Mom-and-Pop Businesses.
Part III: If You’re Selling a Business . . . .
Chapter 10: Making Sure You’re Ready to Sell.
Chapter 11: Deciding What to Do about the Family Company.
Chapter 12: Due Diligence on the Sell Side.
Chapter 13: Case Study: Valuation on the Sell Side.
Part IV: If You’re Buying a Business . . . .
Chapter 14: How Do You Know Whether You’re Ready to Buy?
Chapter 15: Moving from Valuation to Negotiation.
Chapter 16: Due Diligence on the Buy Side.
Chapter 17: Forensic Accounting and the Due Diligence Process.
Chapter 18: Case Study: Valuation on the Buy Side.
Part V: Don’t Try This at Home! Turning Things Over to the Valuation Experts.
Chapter 19: Divorce.
Chapter 20: Estate Planning and Gifting.
Chapter 21: Attracting Outside Investors to Your Startup.
Part VI: The Part of Tens.
Chapter 22: Ten Reasons to Consider a Prenup.
Chapter 23: Ten Questions to Answer Before Considering a Partnership Agreement.
Chapter 24: Ten Things to Consider Before Transforming Your Company Into an ESOP.
Glossary.
Index.
