Shannon Pratt Business Valuations - The Market Approach to Valuing Businesses, Second Edition

The Market Approach to Valuing Businesses, Second Edition

By Shannon P. Pratt

This publication shows how the market approach relates to the income and asset approaches. It thoroughly describes the theory and methodology of this approach, which is dependent on objective data and is highly favored by the IRS and the U.S. Tax Court.
389 pages

Contents

Preface.
Section One: Questions.

1. Defining Market Multiples and Market Approach Methods.
2. The Guideline Public Company Method.
3. The Guideline Merged and Acquired Company Method.
4. Other Market Methods.
5. Finding Public Company Market Transaction Data.
6. Finding Merger and Acquisition Market Data.
7. Adjusting Financial Statements.
8. Comparative Financial Analysis.
9. Compiling Useful Market Value Tables.
10. Selecting, Weighting, and Adjusting Market Value Multiples.
11. Control Premiums and Minority Discounts.
12. Discounts for Lack of Marketability.
13. and 14 Sample Case Questions.
15. Reconciling Market Approach Values with Income and Asset Approach Values.
16. Does Size Matter? Evidence from Empirical Data.
17. Common Errors in Implementing the Market Approach.
18. The Dismal Track Record of U.S. Market Acquisitions.
19. The Market Approach in the Courts.

Section Two: Answers.

1. Defining Market Multiples and Market Approach Methods.
2. The Guideline Public Company Method.
3. The Guideline Merged and Acquired Company Method.
4. Other Market Methods.
5. Finding Public Company Market Transaction Data.
6. Finding Merger and Acquisition Market Data.
7. Adjusting Financial Statements.
8. Comparative Financial Analysis.
9. Compiling Useful Market Value Tables.
10. Selecting, Weighting, and Adjusting Market Value Multiples.
11. Control Premiums and Minority Discounts.
12. Discounts for Lack of Marketability.
13. and 14 Sample Case Answers.
15. Reconciling Market Approach Values with Income and Asset Approach Values.
16. Does Size Matter? Evidence from Empirical Data.
17. Common Errors in Implementing the Market Approach.
18. The Dismal Track Record of U.S. Market Acquisitions.
19. The Market Approach in the Courts.