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Valuation for M&A: Building Value in Private Companies

Valuation for M&A: Building Value in Private Companies

Frank C. Evans, David M. Bishop

ISBN: 978-0-471-21729-9

Jul 2002

312 pages

Select type: E-Book



The only resource available to help calculate investment value versus fair market value

Whether buying or selling, the question of "what's it worth?" is multifaceted. In an M&A setting, it is necessary to compute fair market value, but it is far more important to compute investment value-the value of the target company to a strategic buyer. This calculation varies with each prospective buyer, depending on synergies, benefits, and other competitive analyses that are seldom involved in business valuation. Valuation for M&A is the first book to focus on valuation for merger and acquisitions. This groundbreaking guide provides document request checklists, sample interview questions, a format for adjusting financial statements, a format for developing discount rates, a format for computation of net cash flow, and a valuation reconciliation form, all to help senior executives and M&A professionals better negotiate a successful deal.

Frank C. Evans is a certified business appraiser (CBA), Accredited Senior Business Appraiser in Business Valuation (ASA), and CPA (accredited in business valuation) and David M. Bishop is a Master Certified Business Appraiser (MCBA), Accredited Senior Business Appraiser in Business Valuation (ASA), Fellow of the Institute of Business Appraisers (FIBA), and Business Valuator Accredited for Litigation (BVAL).

Winning through Merger and Acquisition.

Building Value in a Nonpublicly Traded Entity.

Competitive Analysis.

Merger and Acquisition Market and Planning Process.

Measuring Synergies.

Valuation Approaches and Fundamentals.

Income Approach: Using Rates and Returns to Establish Value.

Cost of Capital Essentials for Accurate Valuations.

Weighted Average Cost of Capital.

Market Approach: Using Guideline Companies and Strategic Transactions.

Asset Approach.

Adjusting Value through Premiums and Discounts.

Reconciling Initial Value Estimates and Determining Value Conclusion.

Art of the Deal.

Measuring and Managing Value in High-Tech Start-Ups.

Merger and Acquisition Valuation Case Study.