Author(s): Lisa Holton (Author), Jim Bates (Author)
Publisher: For Dummies
Publication Date: April 17, 2009
Edition: 1st
Language: English
Print length: 366 pages
ISBN-10: 0470344016
ISBN-13: 9780470344019
Book Description
Buying or selling a business? Acquire the tools and learn the methods for accurate business valuation
Business valuation is the process of determining the value of a business enterprise or ownership interest. Business Valuation For Dummies covers valuation methods, including advice on analyzing historical performance, evaluating assets and income value, understanding a company’s financial statements, forecasting performance; estimating the cost of capital; and cash flow methods of valuation.
Written in plain English, this no-nonsense guide 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.
Business Valuation For Dummies takes you step-by-step through the business valuation process, explaining the major methods in an easy-to-understand manner with real-world examples. Inside you’ll discover:
The value of business valuation, including when it’s necessary
The fundamental methods and approaches to business valuation
How to read a valuation report and financial statements
The other players in the valuation process
How to decide you’re ready to sell — and the best time to do so
The three stages of due diligence: the meet and greet; the hunting and gathering; the once-over
How to decide you’re ready to buy — and find the right business for you
What due diligence means on the buying side of things
When to call in the experts: divorce; estate planning and gifting; attracting investors and lenders
This is an essential guide for anyone buying a business, selling a business, participating in a merger or acquisition, or evaluating for tax, loan, or credit purposes. Get your copy of Business Valuation For Dummies to get the information you need to successfully and accurately place a value on any business.
Editorial Reviews
From the Inside Flap
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
From the Back Cover
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 andexecuting valuation
The role of the supporting playersin the valuation process
Detailed case studies on buyingand selling businesses
How forensic accounting fits intovaluation
The soft and hard skills needed forsuccessful valuation
What to build into a partnershipagreement
Why you should pause beforetransforming your company intoan ESOP
About the Author
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